Scarcity & Opportunity Cost Flashcards
1
Q
What is economics all about?
A
Economics is all about choices
Who makes them,Why they make them, and the effects of them
2
Q
What is scarcity?
A
Limited resources for unlimited needs & wants
3
Q
Define economics
A
How we deal with scarcity
4
Q
What are the 3 essential economic questions?
A
What goods & services should be produced?
How should they be produced?
For whom should they be produced?
5
Q
What are trade-offs?
A
Alternative options that are given up when a choice is made
6
Q
What is opportunity cost?
A
The most desired trade off that has been opted against
7
Q
What is economic law #1?
A
Scarcity exists
(There isn’t enough resource to satisfy all needs & wants)
8
Q
What is economic law #2?
A
Because of scarcity we must make choices
9
Q
What is economic law #3?
A
Every choice has an opportunity cost
