Term
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Definition
| Economics is defined as a study of how individuals and groups choose to satisfy their unlimited wants while only having limited resources. In short it is the allocation of scarce resources to satisfy wants and needs |
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Term
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Definition
| Those things we use to make other things for example gold is used to make jewllery |
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Term
| In economics what happens when we get limited resources and unlimited wants? |
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Definition
| we get scarcity(note that scarcity in economics is not about how rare the product or service is but about the peoples want compared to the resources) then we get "the economic problem" after the economic problem we get choices between alternatives which then causes "opportunity cost" |
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Term
| What is the "economic problem"? |
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Definition
| The economic problem is that their are not enough resources available to make all the goods and service that peopl want. |
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Term
| What is "opportunity cost" |
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Definition
| In buying one good a cosumer forgoes the opportunity to buy something else. opportuniy cost is defined as the cost of choosing a good or service measured in terms of the next best alternative given up. for example the opportunity cost for going to the movies is buying takeaways as long as that is the next best alternative given up meaning the next best thing the cosumer could have done with the money. in short the next best thing you could have done with your money compared to what you acctually did ith it is your opportunity cost |
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Term
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Definition
| a consumer is an individual who purchases or buys goods and services |
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Term
| What is the economic choice |
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Definition
| All consumers have to make economic choices because all consumers buy goods and services. in buying one good the consumer forgoes the opportunity cost to buy something else. This is called a economic choice , so a opportunity cost is the next best thing money could have being spent on compared to what money was spent on while the "economic choice" is the whole process of it all |
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Term
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Definition
| first of all Production is the the bringing in to existence of goods and services. A producer is anyone who is involved in these process.in short a producer is a person that makes goods and service. for example a teacher nurse or lawyer are all producers |
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