General Terms and Definitions Flashcards
Define Economics
The study of solving the problem of how to allocate SCARS
RESOURCES that have alerrative uses so as to maximise 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 and how they are produced
Who is to get the goods
What is NEEDS
Things individuals must have satisfied order to sustain life .
What happens is needs are not meet
Life would not be able to sustain life .
What are wants
Desires individuals would like to have satisfied but are not necessary to sustain life.
What is NEEDS
Things individuals must have satisfied order to sustain life .
What is choice
A decision made between alternatives
What happens is needs are not meet
Life would not be able to sustain life .
What our our needs
Food,water,shelter,oxergen,clothing
What is limited means ( scarcity )
The condition of limited resources relative to wants
What is opportunity Cost
The next best alternative FORGONE when a decision is made . The second rank alternative given up when a choice is made
What are our needs
Food,water,shelter,oxergen
What are luxury goods ?
Are goods we want to have to make life better but not essential for our needs.
what are basic goods ?
Are goods that are essential for our needs
