Flashcards in Unit 1 Deck (22):
what are unlimited wants?
what everyone desires
what is the central problem of economics?
what is scarcity?
something everyone wants
what is opportunity cost?
a choice between two alternatives and missing out on the next best thing
what are needs?
something we need to survive
what is a good?
something you can touch
what is a service?
a job of work somebody does for you
what is an economic good?
anything attracted by a price
what is a free good?
anything without a cost of production, not scarce
what are public and collective goods?
these are paid for by the government, either central or local e.g. traffic lights
what is meant by durable?
long lasting, usually expensive, not bought very often
what is meant by single use?
use quickly. not a high price. bought very often
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
what is a D-merit good?
anything the government thinks is bad for us and actively discourages it e.g. physical abuse
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
what does FOP stand for?
factors of production
what is the resource, reward and example in a school for Land?
resource - natural
reward - rent
examples in a school - fields, grass, trees
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
what is the resource, reward and example in a school for capital?
resource - man made
reward - interest
in a school - wall, whiteboard
what is the resource, reward and example on a farm for enterprise?
resource - human
reward - profit
on a farm - farmer
what is renewable resource?
something you can regenerate itself within a reasonable period of time