Econ - 9 KEY CONCEPTS

Question 1

Economics

Answer 1

The study of choice leading to the best possible use of scarce resources in order to best satisfy unlimited human needs and wants

Question 2

Opportunity cost

Answer 2

the value of the next best alternative that must be given up to obtain something else.
It results from scarcity that forces choices.

Question 3

SCARCITY - Concept 1

Answer 3

Refers to the idea that resources are insufficient to satisfy unlimited needs and wants.
Scarce = limited in quantity but desired

Question 4

CHOICE - Concept 2

Answer 4

The study of how society chooses to use its scarce resources to best satisfy the wants and needs of human beings.

Question 5

EFFICIENCY - Concept 3

Answer 5

Efficiency refers to the best possible use of scarce resources to avoid resource waste.

Question 6

productive efficiency

Answer 6

Using the fewest possible resources to produce the maximum output at the minimum cost

Question 7

Allocative efficiency

Answer 7

Producing the goods that society wants and needs
Marginal benefit = marginal cost

Question 8

EQUITY - Concept 4

Answer 8

The idea of being fair or just.
Fair distribution of income, wealth, economic opportunity

Question 9

ECONOMIC WELL-BEING - Concept 5

Answer 9

A multi-dimensional concept that refers to levels of prosperity, economic satisfaction, and standards of living among the members of society.

Question 10

SUSTAINABILITY - Concept 6

Answer 10

Refers to the long-term maintenance of any particular activity or policy. The ability of the present generation to satisfy its needs and wants of resources, without limiting future generations.

Question 11

CHANGE - Concept 7

Answer 11

The study of how changes in economic variables lead to different outcomes in theoretical contexts.
Studying how changes in real-world phenomena impact the economic world.

Question 12

INTERDEPENDENCE - Concept 8

Answer 12

When economic decision-makers interact with and depend on each other (for e.g economic goals)

Risen from globalisation between individuals, communities, nations, groups of nations. (interactions and integration of economies world-wide)

Question 13

INTERVENTION - Concept 9

Answer 13

Government intervention in markets to help achieve societal goals (equity, efficiency, sustainability, economic well-being)
E.g, through legislation