Economics
EconomicsEconomicsthe branch of social science that deals with
the production and distribution and consumption of goods and
services and their management.
The study of the choices individuals, groups , and businesses
make in buying and selling goods or services. Economics
Examples?PersonalFamilySchoolCityStateCountryWorld
Resource
ResourceThe total means available for economic and political
development, such as mineral wealth, labor force, and
armaments.
The total means available to a company for increasing production
or profit, including plant, labor, and raw material;
assets.Resource Examples?Goods
Goodsmerchandise - commodity - property - wareGoods Examples?
Services
ServicesThe action of helping or doing work for someoneService
Examples?Tangible GoodsThings a person can touch.Tangible Goods
Examples?Intangible GoodsThings a person cannot touchOften people
providing a service are also providing an intangible
good.Intangible Goods Examples? QuantityThe amount of
somethingNeedsGoods or services a person requires to survive.Needs
Examples?WantsGoods or services that are not essential to
survivalWants Examples?Scarcity
ScarcityScarcity is the fundamental economic problem of having
humans who have unlimited wants and needs in a world of limited
resources.
It states that society has insufficient productive resources to
fulfill all human wants and needs. Alternatively, scarcity implies
that not all of society's goals can be pursued at the same
timeScarcity Examples? Choice
ChoiceScarcity requires choice. People must choose which of
their desires they will satisfy and which they will leave
unsatisfied. When we, either as individuals or as a society, choose
more of something, scarcity forces us to take less of something
else. Economics is sometimes called the study of scarcity because
economic activity would not exist if scarcity did not force people
to make choices.Choice Examples?Opportunity Cost
Opportunity CostThe loss of potential gain from other
alternatives when one alternative is chosen.
Opportunity cost is the cost of any activity measured in terms
of the value of the next best alternative forgone (that is not
chosen). It is the sacrifice related to the second best choice
available to someone, or group, who has picked among several
mutually exclusive choicesOpportunity Cost Examples? Trade-Off
Trade-OffAn exchange of one thing in return for another,
especially relinquishment of one benefit or advantage for another
regarded as more desirable.
an exchange that occurs as a compromise; "I faced a tradeoff
between eating and buying my medicine
a giving up of one thing in return for another. What are the 3
Basic Economic Questions? What is to be produced?
How will it be produced?
For whom will it be produced?
