Economic Problem Flashcards
What is economics
Study of ways in which a society decides to use its scarce resources to satisfy unlimited wants
What are wants
Things we desire because they give us satisfaction
What are needs
Things that are essential for life in our society
What is opportunity cost
The alternative opportunity thqt is given up when a choice is made
What is a recurring want
Wants that are never satisfied and keep recurring
What are competitive wants
Goods are services thqt can be subsituted for each other
What is productivity
A measure of the efficiency of production
What is the economic problem
You don’t have enough time or money to satisfy your wants so you must make a choice
What is scarcity
Resources are limited , whereas human wants and needs are virtually unlimited
What are the factors of production
Land
Labour
Capital
Entrepreneurship
What is land
Natural resources that people use to produce
What is labour
The working people that help create and produce a good or service
What is capital
Anything tangible and manufactured thqt people use when producing goods and services
What is entrepreneurship
People combining the other three factors to create a profitable operation
