General Terms and Definitions Flashcards
Define Ecology.
Ecology is the study of solving problems 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 resources are produced.
Who is to get the goods.
What Is Needs?
Things individuals must have satisfied in order to sustain life.
What Happens Is Needs Are Not Meet?
Long term - you will die.
What Is Wants?
Desires individuals would like to have satisfied but are not necessary to sustain life. Wants are unlimited.
What Is Limited Needs (Scarcity)?
The condition of a limited resources relative to wants.
What Is Choice?
A decision made between alternatives.
What Is Opportunity Cost?
The next best alternative FORGONE when a decision is made. (The second ranked alternative given up when a choice is made. )
What Are Our Needs?
Food, water, shelter and clothing.
What Are Luxury Goods?
They are goods we want to have to make life better but NOT essential for our needs.
What Are Basic Goods?
They are goods that are essential for our needs.
What Are Our Limited Means?
Individuals use their personal resources or means available to satisfy their needs and wants. The means that an individual has include time, money, skills for knowledge and access to family resources such as skills, time and money. Means are however limited.
What Are The Two Differences Between Wants and Needs?
Needs are needed to sustain life whereas wants are not. Needs are limited whereas wants are unlimited.
