General Term and Definitions Flashcards
Define Economics
The study of solving the problem of how to allocate SCARCE RESOURCES that have alternative uses so as to maximize SATISFACTION of consumers NEEDS and WANTS.
What conditions are needed for Economics
Scarcity/limited resources and unlimited wants
What economic decisions are needed
What to produce
What resources are to be used
How they are produced
Who is to get the goods
What are needs
Thing individuals must have satisfied in order to sustain life
What happens if needs are not meet
long term-you will die
What are wants
Desires individuals would like to have satisfied but are not necessary to sustain life. Wants are unlimited
What is Limited means/Scarcity
The condition of limited resources relative to wants.
What is Choice
A decision made between alternatives
What is opportunity cost
The next best alternative FOREGONE when a decision is made
What are our needs
Food water shelter clothing
What are Luxary goods.
Goods we want to have to life better but NOT essential for our needs
What are basic goods
Goods that are essential for our needs
What are our limited means
Time Money Skill Family
what are to differences between wants and needs
needs are limited where as wants are not
needs are essential to sustain life where as wants are not
What is a non market opportunity
An opportunity with no price
