Economics :) – Flashcards

Limited quantities to meet unlimited wants

It involves decisions because we must give up some alternatives when we choose a certain course of action.

All natural resources that are used to produce goods or services

To describe the trade offs a country is forced to make when choosing between military or consumer production

Is the most important sacrifice that results from making a decision

A person who starts a new business or develops an original idea

Is what happens if resources occur when an economy uses fewer resources than it is capable of expanding.

Resources used to make a product

Physical or mental effort used to create a product

Skills or knowledge of people used to create a product

Machinery, buildings, and computers used to make a product. Ex( Crane, power tools, etc)

They think that because there are limited resources and unlimited wants. No one can have an endless supply of something. Sooner or later a limit is reached. Ex- you can run out of food there could be a shortage of farmers that are unskilled and not have proper farm equipment.

A) The president- Would talk about trade with other nations on a fair and equal basis. If we needed a certain product which would represent scarcity because we don't have it so the president would say it should be sold at a fair price plus a trade off would be in the form of selling that country an equally valuable product. B) A developing country- whether to put money into military or capitol things like factories and things like that. C) High class citizen- What car to drive, what to buy for yourself, which private jet to take. D) Poor citizen- Basic needs; food, new coat if its ripped. Money is a poor persons scarcity and the trade off would be what they would have to get based on basic needs and giving up what they really want.

States that as production switches from one item to another, more and more resources are necessary to increase production of the 2nd item. Therefore, the opportunity cost increases.

It made things more efficient. It carried more goods, people, and it made things easier.

Public road system- Pollution and accidents. Public schooling- Costs money Emergency services- ( like police and fire fighters) When they do their jobs correctly it maintains order and makes citizens happy but the opportunity cost it that they can become corrupt or get hurt and are paid with tax dollars.