Chapter 1 Flashcards
(19 cards)
Leisure
Discretionary time
Recreation
pursuits undertaken in leisure time
Tourism
visiting a place for at least one night for leisure and holiday, business and professional or other tourism purposes
AKA Visiting a place outside home area for more then one night
Economic Problem
Scarcity and Choice
limited resources and unlimited wants = scarcity
scarcity = choices have to be made about resource use and allocation.
questions that arise from scarcity:
- What to produce?
- How to produce it?
- To whom will goods and services be allocated?
Leisure and Tourism Sector Organizations
Organizations producing goods and services for use in leisure time and organizations seeking to influence the use of leisure time
or in simpler words organizations producing means for leisure but still looking to influence
Opportunity Cost
The Alternatives/other opportunities that have to be forgotten to achieve particular thing
Free Market Economy
resources allocated through price system
Mixed Economy
resources allocated through free market and planning authorities
Centrally Planned Economy
resources allocated by planning officials
Microeconomics
study of household and firm’s behaviour
Macroeconomics
study of whole economy
Marginal analysis
study of effects of extra unit
increase profit by producing more if Marginal benefits (MB) exceeds MC
Max profit =»_space; MC=MR
Positive statment
based on fact
Normative statment
based on opinion
Ceteris Paribus
other things remaining unchanged
all other things being equal
Nature of Economics
- Resources and wants – imbalance of resources to wants
- Fact of life – wants exceed available resources = scarcity and choice
- Scarcity and choice – existence of limited resources and high want give rise to scarcity. Choices have to be made on resource allocation
Questions from Scarcity
what to produce
how to produce it
who goods and service be allocated to
marginal cost
extra cost producing additional unit of good
marginal revenue
extra revenue of selling additional unit of product
