the nature of the economic Problem Flashcards
What is the Problem of the economic Nature and what do we do?
The Problem is scarcity!
We need to figure out a way to Allocate these scare resources, because of scarcity we need to make a choice about how to allocate resources.
What is Economics?
Economics is the study of choices leading to the best possible use of scare resources in order to the best satisfy unlimited human needs and wants.
What is Economics?
Economics is the study of choices leading to the best possible use of scare resources in order to the best satisfy unlimited human needs and wants.
What is the basic economics Problem?
The basic economics Problem is concerned with how best to allocate scarce resources in order to satisfy people’s unlimited needs and wants.
What is Scarcity?
Scarcity is the situation in Which available resources or factors of production, are finite, whereas wants are infinite. There are not enough resources to produce everything that human beings need and want.
What are resources?
Resources are the inputs used to produce goods and Services wanted by people- Factors of Production (FOP)
What are resources?
Resources are the inputs used to produce goods and Services wanted by people- Factors of Production (FOP)
What are resources?
Resources are the inputs used to produce goods and Services wanted by people- Factors of Production (FOP)
What are resources?
Resources are the inputs used to produce goods and Services wanted by people- Factors of Production (FOP)
What are Needs?
Needs are Goods and Services which are not necessary for survival.
What are Wants?
Wants are Goods and Services which are not necessary for survival but demanded by economics agents to fulfill their desires.
What are Goods
Goods are all physical objects people need and want.
