Understand The Badic Of Health Economics 2 Flashcards
What is scarcity?
Scarcity is the ever-present situation in all markets whereby less goods are available than the demand for them.
Scarcity drives the need for choices in resource allocation.
How can choice be defined?
Choice can be defined as the act of picking or choosing between two or more possibilities.
It represents the opportunity or power to make a decision.
What is a scale of preference?
A scale of preference is a list of wants or individual wants in order of relative importance.
This helps individuals prioritize their needs.
What is opportunity cost?
Opportunity cost is the loss of the next best alternative when one alternative is chosen.
It represents the benefit a person could have received but gave up to take another course of action.
Who is a consumer?
A consumer is an individual or organization that buys products or services for personal use and not for manufacture or resale.
Consumers drive demand in the market.
Who is a producer?
A producer is an individual or organization that produces goods and services that have economic value.
Producers supply various goods and services in the market according to consumer demand.
