Economics Study Pack Flashcards

Comprehensive flashcards covering introductory economics concepts including needs, wants, scarcity, opportunity cost, factors of production, and classification of goods.

Human __________ are basic necessities required to sustain life, while __________ are infinite alternative forms of fulfilling those requirements, internalizing culture and traditions.

needs; wants

Goods that possess a scarce supply relative to human wants and involve a resource cost and market price are called __________ goods.

Economic

An item like sunlight or natural rain water is classified as a __________ good because it has an unlimited supply at a zero price.

Free

A non-economic good can transform into an economic good when __________ is required to process, store, or distribute it.

human intervention

Because scarcity is their main characteristic, utilizing __________ resources always results in an opportunity cost.

economic

Resources that do not get permanently used up and possess the ability to generate again naturally are known as __________ resources.

Renewable

Resources such as coal and diamonds that are permanently used up with consumption are called __________ resources.

Non-renewable

In economics, __________ is defined as the universal condition where infinite human wants constantly exceed the limited productive resources available.

scarcity

The problem of __________ arises in an economic system due to the scarcity of resources and the fact that resources have alternative uses.

Choice

The value of the next best alternative foregone when making a choice to allocate scarce resources is known as __________ cost.

opportunity

Opportunity cost is zero when utilizing __________ resources or when a resource has absolutely no alternative uses.

unemployed

The four main factors of production are Land, Labour, Capital, and __________.

Entrepreneurship

The factor reward for Land is __________, while the factor reward for Capital is __________.

Rent; Interest

The factor reward for Labour is __________ (hourly/unit based) or __________ (fixed monthly payment).

wages; salary

In economics, __________ encompasses all natural resources gifted by nature located above, on, or below the earth's surface.

Land

Because land is fixed in amount, its total supply is considered strictly __________.

perfectly inelastic

A unique characteristic of land where it varies in fertility and climate based on location is called __________.

Non-uniformity/Heterogeneity

The size of a country's labour force is determined by demographics, health levels, education, and the official legal __________ age.

retirement

An __________ is the individual who organizes other factors of production and bears the uninsurable risks of the production process.

entrepreneur

Unlike the fixed contractual wages of a manager, the reward for an entrepreneur is __________ and can be positive, negative, or zero.

Profit

Factor productivity is calculated using the formula: __________ divided by Total Input.

$$\frac{\text{Total Output}}{\text{Total Input}}$$

Desires that can be fulfilled through the consumption of tangible goods, such as vehicles or food, are called __________ wants.

Physical (Material)

Psychological or spiritual desires like love and kindness that economics does not primarily focus on are called __________ wants.

Mental (Non-material)

A __________ is a temporary market condition where quantity demanded exceeds quantity supplied, unlike scarcity which is a permanent condition.

shortage

Economics is classified as a __________ science because it systematically studies the economic behavior and interactions of people within a society.

social

Goods produced for immediate consumption to satisfy current wants are __________ goods, while manufactured goods used to produce other goods are __________ goods.

Consumer; Capital

Allocating time to one activity involves an opportunity cost because __________ is strictly limited to 24 hours a day and has multiple alternative uses.

time

A newly purchased tractor used by a farmer for ploughing is classified as the factor of production known as __________.

Capital