Scarcity, Ecenomics, and Goverment
What is scarcity
Scarcity is the condition where limited resources are available to meet unlimited wants and needs.
What are the four factors of production?
Land, labor, capital, and enterprise.
What are goods?
Goods are physical objects that can be bought and sold.
What is the public good?
The well-being of society as a whole, including health, safety, and education.
What is GDP?
Gross Domestic Product (GDP) is the total market value of all final goods and services produced within a country in a given period.
What are some of the good things the government does for the economy?
Providing public goods, regulating industries, ensuring stability, and promoting social welfare.
How do the factors of production relate to scarcity?
The factors of production are limited, and their scarcity impacts the ability to produce goods and services.
What are services?
Services are intangible products or actions that satisfy needs and wants, such as teaching or healthcare.
How is public good achieved through individualism?
Public good can be achieved when individuals make decisions that benefit society as a whole.
Why are unemployment rates so closely monitored by economists?
Unemployment rates reflect the health of the economy and can indicate issues like economic downturns or labor market inefficiencies.
How can the government intervene in the economy?
The government can intervene through taxation, subsidies, regulation, and public spending.
What is "land" in the context of economics?
"Land" refers to natural resources used in production, such as water, minerals, and forests.
What are the four levels of industry?
Primary (extraction), Secondary (manufacturing), Tertiary (services), Quaternary (information).
How is public good achieved through cooperation?
Cooperation allows individuals and groups to work together for mutual benefits, such as public health initiatives.
What is the standard of living?
The standard of living refers to the level of wealth, comfort, and access to goods and services available to individuals or communities.
How does scarcity relate to economics?
Scarcity forces societies to make choices about how to allocate limited resources efficiently.
What is "labor" in the context of economics?
"Labor" refers to the human effort used in production, including both physical and intellectual work.
Give an example of a primary industry.
Agriculture, mining, or fishing.
What is meant by an economic shift to the left? Provide an example.
A shift to the left involves more government control or redistribution of wealth, such as increased social welfare programs.
What is the quality of life?
Quality of life encompasses non-economic factors that affect individuals’ well-being, such as health, education, and environmental factors.
What are some of the bad things about government intervention?
Government intervention can lead to inefficiency, bureaucracy, and unintended consequences.
What is "capital" in the context of economics?
"Capital" refers to man-made goods (such as tools, machinery, and factories) used in production.
Give an example of a quaternary industry.
Information technology, research and development.
What is meant by an economic shift to the right? Provide an example.
A shift to the right involves less government intervention and more reliance on market forces, such as tax cuts or deregulation.
Why are standard of living and quality of life flawed indicators of overall happiness?
Because they focus on material factors and do not account for personal satisfaction, mental health, and other subjective experiences.