micro definitions Flashcards
1
Q
NEED
A
something needed in order to survive
2
Q
WANTS
A
something to enhance your standard of living
3
Q
Economic Welfare
A
the economic well being/ happiness of an individual or group within society.
4
Q
Free market economy
A
firms choose which goods and services to produce without much intervention from the government
5
Q
trade-off
A
Opportunity cost is the cost of the next best alternative, however there may be a range of alternatives all of which have been given up. All of these alternatives are referred to as ‘trade-offs’
6
Q
opportunity cost
A
The cost of giving up the next best alternative
7
Q
Scarcity
A
there is a limited amount of resources available
8
Q
Choice
A
making decisions
9
Q
Opportunity cost
A
the option sacrificed when choosing an alternative
