General Terms and Definitions Flashcards
Defined economices
The study of soling the problem of how to allocate SCASCE RESOURCES that have alternative uses so as to maximise SATISFACTION of consumers NEEDS and WANTS.
What conditions are needed for Economics
Scarcity or limited resources and unlimited wants
What Economics Decisions are needed
WHAT to pro due
WHAT RESOURCES ARE TO BE USED
and how they are produced
who is to get the goods
What is needs
Thing individuals must have satisfied in order to sustain life.
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 choies
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 is our needs
food ,water,shelter and clothing
What are luxury goods
They are good we want to have to make life better but NOT essential for our needs
What are basic good
Are goods that are essential for our needs
What are our limited means
Time,money,skill,family
What are the two differences between wants + needs
Needs are needed to sustain life wheres wants are not. Needs are limited we heres wants are unlimited.
