Define Economics.
What is A social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants
What is the definition of scarcity?
Resources are limited, and human wants and needs are virtually limitless.
These include Land, Labor, and Capital.
What are the factors of production?
Giving up one thing to gain another because of scarce resources.
What are Trade-Offs
Iron ore is this factor of production.
What is Land?
What is the tool Economists use to illustrate the points of production for an economy for two different items.
What is the Production Possibility Frontier. (graph/model)
The value of the next best alternative not picked when a decision is made.
What is opportunity cost?
Adam Smith wrote this important work on Economics.
What is Wealth of Nations?
These two entities need each other to exist in a perfect market system.
What are are Households and Firms.
Individuals, businesses, or countries focus on producing a specific good or service in which they have a comparative advantage.
What is specialization?
What are the 3 basic economic questions?
What goods and services should be produced?
How should these goods and services be produced?
Who gets these goods and services?
Define laissez-faire.
What is advocating for minimal government intervention in economic affairs.
Over-fishing and deforestation are examples of this economic concept.
What is the Tragedy of the Commons?