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Questions and Answers
It states that human needs are diverse and continuously increasing while resources to satisfy them are relatively limited
It states that human needs are diverse and continuously increasing while resources to satisfy them are relatively limited
Fundamental economic problem
The limit of availability of resources in contrast to unlimited wants
The limit of availability of resources in contrast to unlimited wants
Scarcity
Scarcity leads to ______.
Scarcity leads to ______.
Economic problem
Individuals or economic entities can address the fundamental economic problem by making _____
Individuals or economic entities can address the fundamental economic problem by making _____
It is the effects or consequences of alternative option in an economic choice
It is the effects or consequences of alternative option in an economic choice
It limits of firms production capacity and necessities making choices on how to best use available resources within this limits
It limits of firms production capacity and necessities making choices on how to best use available resources within this limits
It affects the firm's operations and profitability and are influenced by market conditions including input prices and product demand
It affects the firm's operations and profitability and are influenced by market conditions including input prices and product demand
Refers to the finite nature and availability of resources
Refers to the finite nature and availability of resources
Refers to people's decisions about sharing and using those resourcesrefers to people's decisions about sharing and using those resources
Refers to people's decisions about sharing and using those resourcesrefers to people's decisions about sharing and using those resources
What is not part of the three coordination task of any economy
What is not part of the three coordination task of any economy
Refers to the peak level of performance that uses the least amount of inputs
Refers to the peak level of performance that uses the least amount of inputs
Efficiency is a measurable concept that can be determined using the ratio of useful output to total input
Efficiency is a measurable concept that can be determined using the ratio of useful output to total input
Allocative efficiencies an efficient market whereby all goods and services met the needs and wants of society.
Allocative efficiencies an efficient market whereby all goods and services met the needs and wants of society.
People can use cash in exchange for goods
People can use cash in exchange for goods
It is also a part of market exchange because most businesses require people to pay using it
It is also a part of market exchange because most businesses require people to pay using it
This system relies on competition to allocate resources efficiently
This system relies on competition to allocate resources efficiently
Government plays ako significant role in distributing goods and services. This can include subsidies price controls and public services to ensure equitable distribution.
Government plays ako significant role in distributing goods and services. This can include subsidies price controls and public services to ensure equitable distribution.
These are funded through taxations and are available to all citizens.
These are funded through taxations and are available to all citizens.
This organizations often rely on the nations and volunteer work
This organizations often rely on the nations and volunteer work
Flashcards
Fundamental Economic Problem
Fundamental Economic Problem
The problem of having unlimited human needs and wants but limited resources to satisfy them.
Scarcity
Scarcity
The limited availability of resources in contrast to unlimited human wants.
Economic Problem
Economic Problem
The challenge of making choices about how to use limited resources to satisfy unlimited wants.
Economic Choices
Economic Choices
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Opportunity Cost
Opportunity Cost
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Scarcity (in Firms)
Scarcity (in Firms)
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Firm Decisions
Firm Decisions
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Choice
Choice
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Market Exchange
Market Exchange
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Cash
Cash
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Market Mechanism
Market Mechanism
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Government Intervention
Government Intervention
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Public Goods and Services
Public Goods and Services
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Non-profit Organizations
Non-profit Organizations
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Efficiency
Efficiency
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Allocative Efficiency
Allocative Efficiency
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Efficiency Measurable?
Efficiency Measurable?
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When to Produce
When to Produce
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Study Notes
Human Needs and Resource Scarcity
- Human needs are varied and constantly growing, while resources remain limited.
- Scarcity highlights the imbalance between limited resources and unlimited human wants.
- Scarcity drives individuals and economic entities to make choices regarding resource allocation.
Economic Choices
- The impact of alternatives in economic decision-making is crucial.
- Decision-making involves balancing production capacity with resource availability.
- Firms must optimize resource use within their production limits to enhance operations and profitability.
Resource Availability and Decision Making
- Resources are finite, affecting how they can be shared and utilized.
- Individuals and organizations face challenges in resource distribution decisions.
Efficiency in Economics
- Efficiency reflects the peak performance level with minimal input use.
- Measurable efficiency can be quantified using the ratio of useful output to total input.
- Allocative efficiency occurs when goods and services effectively meet societal needs and wants.
Market Dynamics
- Cash transactions are fundamental in market exchanges for goods and services.
- Competition serves as a key mechanism for resource allocation, ensuring efficiency.
Government Role in Resource Distribution
- The government significantly influences the distribution of goods and services through mechanisms like subsidies and price controls.
- Public services funded by taxation aim for equitable resource distribution among citizens.
- Organizations may rely on national resources and volunteer efforts to enhance service delivery.
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