General Terms and definitions Flashcards

1
Q

Define economics.

A

Economics is the study of solving the problem of how to allocate SCARCE RESOURCES that have alternative uses so as to maximise SATISFACTION of consumers NEEDS and WANTS.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What Conditions are needed?

A

Scarcity/limited resources and unlimited wants.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What economics decisions are needed?

A

WHAT to produce
WHAT resources are to be used
HOW are they to be produced
WHO is to get the goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is needs?

A

Things individuals must have satisfied in order to sustain life.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What happens when needs are not met?

A

Long term- you will die.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are wants?

A

Wants are desires individuals would like to have satisfied but are not necessary to sustain life. Wants are unlimited.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is choice?

A

A decision made between alternatives.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is opportunity cost?

A

The next best alternative FOREGONE when a decision is made. (the second ranked ulternative given up when a choice is made)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are our needs?

A

Food, water, shelter and clothing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are luxury goods?

A

Are goods we want to have to make life better but NOT essential for our needs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are limited means?

A

Time resources family and skill

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are basic goods?

A

Just the essentials to let us survive.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What tyoes of production are there?

A

Goods

Services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the two differences between wants + needs?

A

Needs are life where as wants are not. Needs are limited where as wants are unlimited

How well did you know this?
1
Not at all
2
3
4
5
Perfectly