Econs test 1 Flashcards
1
Q
Define an economy
A
a system that allocates scarce resources to satisfy the needs and wants of society.
2
Q
Define micro-economics
A
the study of the parts that form the economy that are also individual.
3
Q
Define Macro-economics
A
the study of the economy as a whole.
4
Q
Define opportunity cost
A
What you give up in an economical decision.
5
Q
Define relative scarcity
A
the resources that are available to produce the goods and services that are scarce in relation to what the societal wants and needs are.
6
Q
A
