Economics lessons 1- intro to economics

What is opportunity cost?

Whatever you give up to do something the value of the next best alternative that you do when making a choice.

What is scarcity?

The tension between infinite wants and needs

What are the two basic rules of scarcity?

1) People have unlimited wants but limited resources 2) Everything has a cost

What is economics?

The study of people and their choices. How that affects the world

True or false , Is it possible to produce an unlimited amount of weapons and consumer goods even though resources like workers, factories, and raw materials are limited?

False, it's not possible due to limited resources.

What are incentives?

A set of external moviators that explain peoples choices and behaviors in economic situations.

what are some examples of incentives?

Financial rewards, discounts, promotions, and penalties.

What is microeconomics?

The study of how consumers,workers,firms interact to generate certain outcomes in specific markets.

What is Marcoeconomics?

The study of production,employment,prices and policies on a nationwide/worldwide scale.