what is economics?
What is the definition of economics?
The study of how people try to satisfy seemingly unlimited and competing needs and wants through careful use of relativity scarce resources.
What is given up when an economic decision is made?
opportunity cost, because you given up your last choice so you made the economic decision.
TRUE OR FALSE: Economic growth represents the expansion of the
country's potential GDP or national output
True
what is a capital good?
Machinery or equipment that is use by business to produce other products
What are needs and wants?
needs, the Basic requirement for survival. Wants, Simply something we would like to have but is not necessary for survival.
What are alternative choices when making an economic decision?
Tradeoffs, because you have to balance out the factors and see which one you would rather buy.
What is economic growth?
Is an increase in the production of goods and services in an economy (country or business).
What is a consumer good?
Intended for final use by individuals
what is scarcity?
The condition that results from society not having enough resources to produce all the things people would like to have.
what are the two main key points of decision making?
consumers and producers. A consumer is a person who buys and using services. A producer is a person who makes good and provides services. Also consumers and producers are like supply and demand.
What is productivity?
A measure of economic performance that indicates how efficiently inputs are converted into outputs.
draw the basic problem in economics.
what are the factors of production?
Land, labor, entrepreneurship, capital
Why does every economic decision involve an opportunity cost?
Because of scarce resources and unlimited wants
What are the two main keys points for productivity?
inputs and outputs. Inputs, any resources used to create goods and services. Outputs, the quantity of goods or services produced.
What is durable and non-durable good?
A durable good lasts more than 3 years when used on a regular basis. A non-durable good Lasts fewer than 3 years when used on a regular basis.
what is the factor and product market?
The factors market is where the factors of production are exchanged, the product market is where goods and services are exchanged
The cost of producing more goods is called what?
marginal cost
Economic growth and productivity is driven by ________.
human capital
Tradeoffs, Opportunity costs, marginal costs, marginal benefits, and personal priorities are all important to consider when ________.
making a rational choice