Lesson 1: Economics Flashcards
Is a social science concerned with using scarce resources to obtain the maximum of the unlimited wants of society.
Economics
the limited nature of resources, which underlies the basic economic problem.
Scarcity
the problem of having unlimited wants, but limited resources to satisfy them.
Economics Resources
came from nature that are used in production, including land, raw materials, and natural process.
Natural Resources
the process materials, equipment, and buildings used in production.
Capital Resources
the efforts of people involved in production, including labor and entrepreneurship.
Human Resources
the essentials of life, such as food and shelter.
Needs
desires for non-essential items.
Wants
Described economics as the study of mankind in the ordinary business life. It examines part of the individual and social action that is most connected with the attainment and use of material requisites of well-being.
Alfred Marshall
is when a good is scare compared to its demand.
Relative Scarcity
when supply is limited.
Absolute Scarcity
soil and natural resources that are found in nature and are not manmade.
Land
man-made resources used in the production of goods and services which include machineries and equipment. The owner of capital earns an income called interest.
Labor
As a social science, economics studies how individuals make choices in allocating scarce resources to satisfy their unlimited wants.
Economic and Social Science
is a division of economics that is concerned with the overall performance of the entire economy.
Macroeconomics
