test 1 Flashcards
what is a need?
basic requirement for survival
what is a want?
a way of expressing a need
what is economics?
the study of how people try to satisfy their own needs/wants them rough careful use of scarce resources
what is the scarcity of resources?
condition that results from not having enough resources to produce all the things you would like to have
what are the 3 questions we answer when deciding how to use our limited resources?
- What to produce?
- How to produce?
- For Whom to produce?
what is production?
refers to the process of creating goods/services
what are the 4 factors of production?
- Land
- Capital
- Labor
- Entrepreneurs
What are the 4 key elements to the study of economics?
- Description
- Analysis
- Explanation
- Prediction
why is prediction important?
it gives the opportunity to prevent the same mistakes
what is a consumer?
a person or individuals who use goods/services to satisfy their wants/needs
what are 2 examples of goods?
TV & cell phone
what are 2 examples of services?
doctors & teachers
what is wealth?
the accumulation of products that are tangible, scarce, useful, and transferable
who is the father of economics?
adam smith
what is utility?
the capacity to be useful
