Econ Unit 1 Feb 2023

Economics is:

• A situation in which consumers want more of a good or service than there is available

• The alternatives we give up when we choose one course of action over another.

• The study of how people seek to satisfy their needs and wants by making choices.

• The idea that limited amounts of goods and services are available to meet unlimited needs and wants.

Scarcity exists

• When you have limited needs and unlimited wants

• When you have unlimited wants and limited resources

• When you have a temporary shortage of goods to meet people's needs

• When poor people consume fewer daily calories than wealthy people

Opportunity cost is:

• situation in which consumers want more of a good or service than there is available.

• The alternatives we give up when we choose one course of action over another.

• The loss of potential gain from our second best option when one option is chosen.

• The idea that limited amounts of goods and services are available to meet unlimited needs and wants

Trade-offs are:

• A situation in which consumers want more of a good or service than there is available.

• The alternatives we give up when we choose one course of action over another.

• The loss of potential gain from our second best option when one option is chosen.

• The idea that limited amounts of goods and services are available to meet unlimited needs and wants.

A shortage is:

• A situation in which consumers want more of a good or service than there is available.

• The alternatives we give up when we choose one course of action over another.

• The loss of potential gain from our second best option when one option is chosen.

• The idea that limited amounts of goods and services are available to meet unlimited needs and wants.

Marcus goes to the shore store and wants to buy a pair of Jordans, Yeezys, and Filas, but only has enough money to afford one pair. This is an example of:

• Trade-off

• Opportunity Cost

• Scarcity

• Shortage

Scarcity is temporary

• True

• False

Shortages are temporary or long term

• True

• False

The resources used to produce goods and services.

• Trade-offs

• Opportunity Cost

• Factors of Production

• Scarcity

The natural resources used to create a good or service

• Land

• Human Capital

• Physical Capital

• Labor