Econ test...

limited availability of economic resources relative to unlimited demand for goods and services.

Scarsity

Choice

scarce resources mean we must make choices and way out opportunity cost. Economic decision making

Efficiency

How to optimize the use of our scarce resources, therefore minimizing waste

Equity

Economic outcomes are different for different people; everyone has different wants and needs. The concept of fairness

Economic well-being

level of prosperity and economic well being enjoed by people in an Economy. Having present and future financial security, meeting basic needs, and affording your pleasures

Sustainability

ability of present generation to meet its needs without compromising people in the future, specifically trying to limit negative effects on the environment. Finding a balance of meeting our own needs with planetary boundaries

Change

Is inevitable in the economy because of the variability in markets, supply, and demand, along with advancements and scarce resources

Interdependence

No one is completely self-sufficient. Everyones economic choices effect everyone else. The greater the interaction, the greater the _______________

Intervention

the governments involvement when markets fail to achieve equality, economic well being, and/or sustainability

9 KEY CONCEPTS

Scarcity, Choice, Efficiency, Equity, Economic well-being, Sustainability, Change, Interdependence, Intervention

Economics

The study of people in society and how they interact with eachother

Social nature in Economics

The study of social nature to explain economic habits

Microeconomics

deals with smaller economic agents such as producers and consumers

Macroeconomics

deals with factors affecting economy as a whole (country/world) ex. unemployment, failing prices, inflation, etc.

2 central problems of econ

Scarcity and choice (opportunity cost)

FACTORS OF PRODUCTION

Land, Labor, Capital, Entrepreneurship. Resources used to produce goods and services. Outline for PPC curve

Land

resources provided by nature. ex. farm, salmon hachary, etc.

Labor

People used in goods and service production (human capital)

Capital

Where goods are made. ex. offices, factories, etc.

Entrepreneurship

managing and organizing. Risk taking factor of production

Opportunity cost

The main thing you loose when making a choice; what you sacrifice

Free market economy

supply and demand make the decisions about production and consumption

Planned economy

The government/central body makes the decisions about production and consumption

PPC curve

Production possibilities curve. Used to illustrate scarcity, choice, and opportunity cost. Shows maximum combination of two types of output

Growth

country produced more of everything

Development

Quality of life gets better for everyone

sustainable development

Quality of life improves without negatively effecting the future