econ terms
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
entrepreneurship
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
entrepreneurship