The Market System Flashcards
Most important thing for humans
Basic needs
What is economics?
The study of the way that we make decisions about the use of scarce resources
What are the basic needs?
Food, shelter and clothing
What are the wants?
Something we desire that’s less important than needs
Needs and wants =>
=> goods and services
What do we need to get goods?
We produce them
To produce what are needed?
Land, labour, capital and enterprises
What do we call the other way for land, labour, capital and enterprises?
Resources or factors of production
What else economist study about?
Human behaviour, social science
How do you describe social science?
Predict something about the current financial situations and prove with statistics
How do we call the choice made when we choose one from two limited choices?
Opportunity cost
Is car a need or a want?
A want
What does needs mean in economics?
Things for basic human survival
Why can’t some countries exploit resources even if they exist?
The amount of resources they have could be scarcer than others or natural factors
Define “Basic Economics Problem”
Allocation of nation’s scarce resources by government due to needs and wants being unlimited and resources being limited
