Economics Fundamentals Flashcards

A complete set of vocabulary flashcards covering economic terms, types of goods, market principles, and scarcity from the lecture notes.

Need

A good that a person must have to survive and live their life, or a good needed for work or education (e.g., food, shelter).

Want

A good that a person does not need to get and can postpone for another time because they can survive and live normally without it (e.g., game, pets).

Essential Goods Scarcity

Scarcity affecting basic food needs, which can arise from bad weather, making basic food needs expensive and causing hunger.

Energy Supplies Scarcity

Scarcity affecting fuel that often arises due to wars, making higher transport costs and expensive electricity bills for ordinary people.

Problem of Scarcity

The universal problem faced by all societies because everyone has unlimited wants but limited resources.

Contextual Need vs. Want

The concept that an item's classification depends on a person's work; for example, a smart phone is a need if all work is done on the phone, but a want if work is physical and doesn't require a phone.

Capital Good

A good needed to produce other goods, such as an oven bought by a bakery to bake and make bread.

Consumer Good

A final product sold directly to consumers that is ready to use or eat, such as bread bought by a customer to eat.

Paradox of value

Apparent contradiction between the high value of a nonessential item and the low value of an essential item.

Value

Monetary worth of a good or service determined by the market.

Utility

Ability or capacity of a good or service to be useful and give satisfaction to someone.

Wealth

Sum of tangible economic goods that are scarce, useful, and transferable from one person to another; excludes services.

Description

An economic concept that allows us to know what the world looks like, though it leaves many important "why" and "how" questions unanswered.

Gold (Paradox of Value Example)

A nonessential item that is expensive and has a high economic value because it is rare and scarce.

Water (Paradox of Value Example)

An item essential for survival and living that has a low market value (cheap) because it is easily found across many brands like oasis, al ain, and dubai water.

Need

A good that a person must have to survive and live life, or a good necessary for work or education, such as food or shelter.

Want

A good that a person does not need to get immediately and can postpone because they can survive and live normally without it, such as games or pets.

Scarcity

The condition facing all societies where everyone has unlimited wants but limited resources.

Food Scarcity

Scarcity of basic food needs that can be caused by bad weather, making food expensive and leading to hunger.

Fuel Scarcity

Scarcity of energy supplies often caused by wars, leading to higher transport costs and expensive electricity bills.

Context-Dependent Need

A situation where an item like a smartphone is a need for someone whose work is entirely on the phone, but a want for someone whose work is physical.

Capital Good

A tool or piece of equipment, such as a bakery's oven, used to produce and make other goods.

Consumer Good

A product sold directly to consumers that is ready to be used or eaten, such as bread bought by a customer.

Paradox of Value

The apparent contradiction between the high value of a nonessential item and the low value of an essential item.

Value

The monetary worth of a good or service determined by the market.

Utility

The ability or capacity of a good or service to be useful and give satisfaction to someone.

Wealth

The sum of tangible economic goods that are scarce, useful, and transferable from one person to another, excluding services.

Description

An aspect of economics that allows us to know what the world looks like, though it leaves many important why and how questions unanswered.

High Economic Value (Gold)

A high market price for a nonessential item because it is rare and scarce, as price depends on scarcity rather than usefulness for survival.

Low Market Value (Water)

A cheap price for an essential item needed for survival because it is easily found across many brands (such as i coses, alim, dubai water).