Economics Basics Review: Scarcity, Resources, PPC, and Growth

A set of QUESTION_AND_ANSWER flashcards covering scarcity, types of resources, opportunity cost, consumers and producers, the PPC, and economic growth.

What is scarcity?

The problem that all countries have limited resources.

What are finite resources?

There is an end to the resources available.

What are unlimited resources?

People wanting more of a particular resource

What are scarce resources?

the amount of resources availabe when the supplies are limited

What is the basic economic problem?

What to produce? How to produce? For whom to produce?

What is opportunity cost?

The cost of the next best alternative given up.

Who are consumers?

individuals or households that purchase and use goods or services to satisfy their needs.

Who are producers?

individuals or organizations that produce or supply goods or services.

What do consumers have to do?

They have to choose how to spend their limited budgets.

What are resources CELL?

Capital Enterprise Land Labour

What causes positive economic growth?

• increased money,

• successful business projects,

• developed technology,

• improved efficiency,

• education and training

• new resources

What choices may producers have to make?

they have to choose different aspects of their business to develop it

What choices may governments have to make?

they have to choose different aspect of their country to develop it

What are capital goods?

man-made goods used in the production of other goods and services.

What are consumer goods?

goods that satisfy the needs and wants of consumers.

What is economic growth?

the increase in the level output by nation