Scarcity And Choice Flashcards
What is economics ?
Economics is the study of how
people, businesses and
governments who have limited
resources (for example money),
make choices and decisions to
meet their needs and want
What are economic resources ?
Economic resources are the
factors (things) used to produce
and distribute goods, services and
wealt
What is a need ?
A need is something that is essential for survival eg. Food water shelter
What is a want?
A want is something we would like to have e.g iPhone , Xbox
What is opportunity cost?
Opportunity cost is the item that we do not buy in order to buy another item
What is financial cost ?
Financial cost is the price of the item you choose to buy
What is a rational choice
A rational choice is one where the expected gains outweigh the expected losses
What is a rational decision ?
A rational decision is one that is based on reason or logic
