econ terms

economics

economics

• how nations make decisions about distributing limited resources to satisfy the unlimited wants and needs of its citizens with limited resources

  • whatever they decide is how the economy will be

    *it is all about production (goods and services)

    • the usa has the biggest economy since we produce the most

scarcity

• a universal problem that can never be solved

  • unlimited wants and needs with limited resources make for scarcity

    *thanos: wanted to kill half of the universe, so everyone could get their needs and wants

    • scarce = limited

alternatives

• list of options or possible ways to allocate (distribute or give away) resources

  (pro-con lists)

  • using a computer to be more productive or only a pen and paper

    *only affects YOU!

choice

• because you cannot have everything you want, you must make a decision

  • one option —> you pick

trade-off (verb)

• the act of getting something but giving up something else

  • sentence:

    “i chose ________ and gave up _______.”

    • ex. I chose to come to school and gave up the option to stay at home. I chose to use an agenda instead of taking a picture of the homework.

opportunity cost (noun)

• the value of the runner-up —> your second choice (the next BEST alternative)

  • not money or the cost of what you chose but because of scarcity

    • ex. i gave up the opportunity to go to the mall to buy a sweater from hollister but instead, i got one from amazon

allocate

• to distribute or give away resources

needs

• things required for survival

  • food, water, clothing, shelter

wants

• luxuries not required for survival

  • these things are scarce and the factors necessary for the economy to produce goods and services

    • labor: work, time

    • land: land, water

    • capital: buildings, tools