economics deck 2- basics

Question 1

scarcity

Answer 1

we have unlimited wants but limited resources, so we have to be efficient. meaning we have to maker smart choices about how to use what we have.

Question 2

injections

Answer 2

enter the economy. Exports, government spending’s, investments (businesses spending on capital)

Question 3

opportunity cost

Answer 3

Opportunity cost is the cost of next best alternative

Question 4

what questions does scarcity raise

Answer 4

what to produce? because we cant produce everything we must produce what we need the most. how to produce? we must find efficient ways to produce. for whom to produce? we have to determined who is going to get these goods and services, which often means prioritizing certain groups and people.

Question 5

free enterprise

Answer 5

means people and businesses can buy, sell and run business freely with little government control. it allows competition, private ownership and the chance to make profit.

Question 6

leakages

Answer 6

leaving the economy. Savings, instead of putting it in the economy families save, taxes, imports ( spending domestic goods and services)

Question 7

give an example of scarcity

Answer 7

if we want gold, we have to mine carefully because there’s a limited amount on earth.