ecomo Flashcards
(20 cards)
Three basic human needs?
food/ water , clothing and shelter
land
natural resources
labor
people who work to produce goods and services
capital
tools and machines required to production
entrepreneurship
econ motivation for someone to try to make a profit from an idea
Biggest challenge of economics
scarcity
why scarcity?
don’t have enough resources , time and money to get what we want
allocation
determine what needs or wants should be addressed
what is economics?
the study of how people and nations make choices about how to used scarce resources to fit their needs and wants
consumer good
used by individual like electronic and food
capital goods
manufactured goods used to produce other goods and services
value
monetary worth
paradox of value
some necessities , such as water have little value and non- necessities such as diamonds have higher value
utility
capacity to be useful or provide satisfaction
opportunity cost
next best alternative that has to be given up for the alternative that was chosen
Economics efficiency
use factors of production wisely
economics equality
fair distribution of wealth
traditional economy
scarce resources is based on ritual , habit and custom
pros about traditional economy
everyone knows how to figure out WHAT HOW AND FOR WHOM to produce
