General terms and Denfinitions 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
Desires individuals would like to have satisfied but are not necessary to sustain life. Wants are unlimited.
What is Scarcity
Limited resources relative to our unlimited wants.
What is Choice
A desicion made between alternatives
What is opportunity cost
The next best alternative FOREGONE when a decision is made.
Define economics
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.
What is needed for economics
For economics to happen there must be sacristy limited resources and unlimited wants
What are the economic Decisions
.What to produce
.What resources are to be used and how they are produced
.Who is to the get goods
What are our needs
Food, water, shelter and clothing
What our limited needs means
Time
Skill
Money limited resources we have to satisfy our needs and wants
Family
What are the two differences between needs and wants
Needs are required to sustain life but wants are not. Wants are unlimited needs are not
