Flashcards in 1. Introduction to Economics Deck (11):
A social science that studies how individuals, firms and governments make choices on allocating scarce resources to satisfy unlimited wants
1. wants are unlimited
2. resources are limited
3. must choose which desire to satisfy
Materialistic desires of individuals or the community, which provide satisfaction and pleasure.
The opportunity cost of satisfying a want is the alternative want that we must forego.
What you give up/what you get
graphical representation/model of the OC
items that have not been produced for immediate consumption, but used for production of other goods
support (an organisation or activity) financially
a physical product that is tangible, and capable of being delivered to the purchaser
intangible act that benefits us
the cyclical fluctuations in the general level of economic activity