Basic Economic concepts

What is the definition for scarcity?

• When we don't have enough of something

• Lack of stock

• When a person has limited means and unlimited wants

• Shortage of products

What are our four limited means?

• Skills, income, time and whanau

• Our resources

• Money income and time

• Our money

What is the definition for values?

• Important things

• What we like to buy

• Our core beliefs that influence our economic decisions

• Needs and wants

What is the definition of opportunity cost?

• The cost of the next best alternative foregone

• The total cost of all alternatives

• The amount of money spent on a choice

• The value of all resources used

What is the definition of a need?

• Something essential for survival

• Something we desire

• Something we can live without

• Something that is nice to have

What is the definition of a want?

• Something essential for survival

• Something we desire but can live without

• Something that is mandatory

• Something that is a necessity

What is the definition of a good?

• Something that is produced and can be touched

• Something that is intangible

• Something that is a service

• Something that is a necessity

What is the definition of a service?

• Something that is produced and can be touched

• Something that is intangible and provides value

• Something that is a physical product

• Something that is a necessity

What is the definition of a producer?

• Someone who consumes goods and services

• Someone who creates goods and services

• Someone who distributes goods

• Someone who buys goods

What is the definition of a consumer?

• Someone who creates goods and services

• Someone who buys and uses goods and services

• Someone who distributes goods

• Someone who sells goods