Grade 12 /The Economic Way of Thinking

Scarcity:The basic Economic Problem

100

This is the desires that can be satisfied by consuming a good or a services

wants

200

these are things that are necessary for survival

Needs

300

what is scarcity?

This exist when there are not enough resources to satisfy human wants

400

this is the study of how individuals and societies satisfy their unlimited wants with limited resources

Economics

500

these are objects such as food, clothing, and furniture that can be touch

Goods

The Three economic questions and the Factors of production

100

what are the three questions?

1. what will be produced?

2.How will it be produced?                                       3. For whom will it be produced?

200

These are the resources needed to produced goods and service

Factors of Production

300

what are the factors of production?

1.land (workers, human resources)

2. labors (property, natural resources)

3.goods and money( capital, machinery, technology)

4.Entrepreneurship

400

This refers to all natural resources used to produced goods and services.

Land

500

This is all of the resources made and used by people to produce goods and service.

Capital

Economics Choice Today:Opportunity Cost

100

what is Opportunity Cost?

It is the value of something that is given up yo get something else that is wanted 

200

what is a trade-off?

It is the alternative people give up when they make choices

300

what is Incentive?

it is the motivation offered to encourage people to take certain actions.

400

this is the benefit satisfaction gained from using a good or service

Utility

500

what is tangible and what is intangible?

Goods are tangible, and services are intangible.