General Terms and Definitions Flashcards
Define Needs?
Things individuals must have satisfied in order to sustain life.
What happens if needs are not met?
You may die.
What are wants?
Wants are desires individuals want to have satisfies but are not necessary to sustain life. Wants are unlimited. You will never satisfy all your wants.
What is Scarcity?
Scarcity is there are limited resources relative to unlimited wants.
What is choice?
Choice is a decision made between alternatives.
What is opportunity cost?
Opportunity is the next best alternative FOREGONE when a decision is made. The second ranked alternative given up when a choice is made.
define Economics?
Economics is the study of solving the problem of how to allocate scarce resources thats have alternative uses so as to maximize satisfaction of consumers satisfaction of consumers needs and wants.
What is needed for Economics?
The study of economics is you need scarcity and unlimited wants. ( unlimited resources ) the study to allicate the problem.
What are the economic decisions ?
There are theses things, the first economics decision is what to produce, what resources will be used, how they are to be produced, who is to get the goods.
What are our needs?
Our needs are food, water,shelter and clothing.
What are our limited mean?
Our limited means are time, skill, money and family.
What are the differences between needs and wants?
Needs are required to sustain life- wants are not.
Wants are unlimited- needs are not
