Lesson 1 Flashcards
1
Q
What is the definition economics
A
Economics is the social science that sudies how people use scarcity ressources to satisfy their unlimited wants a efficient way
2
Q
What is a ressource and give me two synonyms
A
Ressource is the thing we use to produce goods and services
Factors of production
Means of production
3
Q
What is the difference between a good and a service
A
Good is a tangible thing to satisfies our wants and a service is a untangible thing that satisfies our wants
4
Q
What are the four categories of ressources and their definition
A
- Land (Ld): anything provided by nature
- Labour (L): mental and physical effort
- Capital (K): produced means of production we will NOT include humain capital nor financial capital
- Entrepreneurship (Entr): the ability and talent to organize ressources
5
Q
Why is efficiency of ressources so important
A
Because we cannot afford to waste ressources since they are limited
6
Q
What is an opportunity cost
A
The next-best altelrnative that is sacrificed when a choice is made
