Basics Flashcards
(10 cards)
What is the economic problem
Unlimited wants and limited resources
Why is it a big problem
Because the economies can’t afford all peoples wants
What does ‘‘wants’’ mean in economics
In economics, wants are defined as something that a person would like to possess, either immediately or at a later time but is not necessary for survival
What does “needs” mean in economics
the term needs, we mean those requirements which are extremely necessary for a human being to live a healthy life. and are necessary for survival
What is PPC
PPC stand for production possibility curve. the production possibilities curve is a visualization that demonstrates the most efficient production of a pair of goods. Each point on the curve shows how much of each good will be produced when resources shift to making more of one good and less of another.
What’s the difference between PPC and PPF
There is no difference but how PPC stands for production possibility curve and PPF stands for production possibility Frontier
What’s opportunity cost
potential forgone benifit from a missed opportunity
what is economic growth
Economic growth is an increase in the production of goods and services in an economy over time.
negative causes of economic growth
Higher oil prices reducing living standards
positive causes of economic growth
Low global inflation, which creates a period of economic stability.
