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Flashcards in Unit 1 Deck (22):
1

what are unlimited wants?

what everyone desires

2

what is the central problem of economics?

scarcity

3

what is scarcity?

something everyone wants

4

what is opportunity cost?

a choice between two alternatives and missing out on the next best thing

5

what are needs?

something we need to survive

6

what is a good?

something you can touch

7

what is a service?

a job of work somebody does for you

8

what is an economic good?

anything attracted by a price

9

what is a free good?

anything without a cost of production, not scarce

10

what are public and collective goods?

these are paid for by the government, either central or local e.g. traffic lights

11

what is meant by durable?

long lasting, usually expensive, not bought very often

12

what is meant by single use?

use quickly. not a high price. bought very often

13

what is a merit good?

a public good that the government decides that is good for consumers. they promote it, often subsadises it, can inforce by making it a legal requirement e,g, school attendance

14

what is a D-merit good?

anything the government thinks is bad for us and actively discourages it e.g. physical abuse

15

what is a consumer good?

any tangibles that consumers use for their own satisfaction - end product whereas a capital good (which is man made like a consumer good) is not used for consumer satisfaction. capital goods are used to produce other goods and services

16

what does FOP stand for?

factors of production

17

what is the resource, reward and example in a school for Land?

resource - natural
reward - rent
examples in a school - fields, grass, trees

18

what is the resource, reward and example on a farm for labour?

resource - human
reward - salary/ wages (also bonuses)
on a farm - tractor driver, vet, blacksmith

19

what is the resource, reward and example in a school for capital?

resource - man made
reward - interest
in a school - wall, whiteboard

20

what is the resource, reward and example on a farm for enterprise?

resource - human
reward - profit
on a farm - farmer

21

what is renewable resource?

something you can regenerate itself within a reasonable period of time

22

what is a non-renewable resource?

cannot regenerate quickly: once they have been used, they are gone