General terms and Definitionas Flashcards
Define needs
Things individuals must have have satisfied in order to sustain life.
What happens if needs are not met
You may die
What are wants
Desires individuals would like to have satisfied but are not necessary to sustain life, wants are unlimited.
what is Scarcity
Scarcity is limited resources relative to wants.
What is choice
A decision made between alternatives.
What is opportunity cost
It is the next best alternative FOREGONE when a decision is made.( the second ranked alternative when a choice is made
Define economics
The study of solving the problem of how to allocate scarce resources that alternate uses as to maximise satisfaction of consumers needs and wants.
what is needed for economics
Scarcity/limited resources and unlimited wants
what are economic decisions
what to produce
what resources will be used
how they are produced
who is to get the goods
what are our needs
food, water, shelter, clothing
What are our limited means
skill, time, money, family
What are the two differences between needs and wants.
Needs required to sustain life and wants are not.
Wants are unlimited.
Our limited resources we have to satisfy our needs and wants .
time
skill
money
family
