Economic Resources Flashcards

Questions and Answers

What is the definition of 'wants'?

Things that are necessary for survival

Resources that are limited in availability

Products that are produced by businesses

Desire for things that we may or may not actually require (correct)

What are economic resources?

Resources used by a business to produce goods and services.

When do natural resources become economic?

When used to produce goods and services.

What are capital resources?

Manufactured items used to produce goods and services. Signup and view all the answers

What are human resources?

People responsible for combining other resources to produce goods and services. Signup and view all the answers

What typically causes shortages in certain jobs?

Lack of special training or skills, disinterest, demographic changes, or location issues. Signup and view all the answers

What are work demographics?

Characteristics of people that make up the workforce. Signup and view all the answers

What are opportunity costs?

What you give up to gain something else. Signup and view all the answers

What is consumption?

The process of using goods and services. Signup and view all the answers

What are the 3 basic economic questions?

What products will be produced? How will products be produced? How will products be allocated? Signup and view all the answers

What does production refer to?

The act of making goods. Signup and view all the answers

Study Notes

Key Economic Concepts

Wants: Represents unlimited desires for goods that may not be necessary, can change over time, and often compete against each other.
Economic Resources: Essential assets utilized by businesses to create goods and services; categorized into three types: natural, human, and capital resources.

Types of Economic Resources

Natural Resources: Transform into economic assets when harnessed for production; examples include land, water, coal, oil, and vegetation. Limited availability raises the importance of sustainable alternatives.
Capital Resources: Manufactured items required for producing goods and services; this category includes buildings, computers, and tools that help convert natural resources with human labor.
Human Resources: Individuals responsible for the integration and management of all resources to produce goods and services; often comes with limitations based on skill sets and availability.

Labor Market Challenges

Shortages in Certain Jobs: Arises from a lack of skilled labor, disinterest in available positions, demographic shifts in the workforce, or geographical misalignment of job opportunities.
Work Demographics: Comprises the diverse characteristics of the workforce, including generational cohorts such as baby boomers, Generation X, millennials, and Generation Z.

Economic Decision-Making

Opportunity Costs: Refers to the potential benefits lost when choosing one option over another; emphasizes the importance of making informed resource allocation decisions through trade-offs.
Consumption: Defines the use of goods and services by consumers; represents the ultimate aim in economic activities, where government projects like infrastructure and public services play a significant role.

Fundamental Economic Questions

Key considerations include:
- What products should be produced?
- How will these products be manufactured?
- How will the products be distributed or sold?

Production Concepts

Production: Encompasses the process of creating goods; a producer refers to any business entity involved in manufacturing these goods.

Description

These flashcards cover essential economic terms, including 'wants', 'economic resources', and 'natural resources'. Each term is defined to enhance your understanding of economic concepts. Ideal for students studying economics or anyone interested in the fundamentals of resource allocation.