Economics Definition
Economics Definition
1) Scarcity- the limited nature of society’s resources 2) Economics- the study of how society manages it’s scarce resources 3) Efficiency- the property of society getting the most it can from it’s scarce resources 4) Equality- the property of distributing economics prosperity uniformly among the members of society 5) Opportunity cost- whatever must be given up or forgone to obtain some item 6) Rational people- people who systematically and purposefully do the best they can to achieve their objectives 7) Economics studies how we use our scare resources in production and to exchange and consume goods and services according to the prevailing economic system 8) Economic agents engage in production, exchange, specialization and consumption 9) Scarce resources are land, labor, capital resources, enterprise, the demand for which exceed the supply if they were given away free 10) Resources are the land, natural resources, labor, capital and enterprise that can be combined to produce goods and services. They are also called the factors of production 11) Scarcity exists when the amount of good or resources offered is less than what users would want if it were given away free 12) Specialization is the use of resources to their best advantage 13) Exchange is the trading of goods and services produced through specialization 14) Specialization and exchange raise material well-being 15) The arrangements and institutions that deal with scarcity are called the economics system 16) Under capitalism, resources are privately owned and people make their own economic decisions 17) Under socialism, the state owns the resources and makes the economic decisions 18) The economic problem is how to choose what products to produce; how they are to be produced; and for whom 19) Wants are what people would wish to have if the price were zero 20) The law of scarcity states the wants
1) Scarcity- the limited nature of society’s resources 2) Economics- the study of how society manages it’s scarce resources 3) Efficiency- the property of society getting the most it can from it’s scarce resources 4) Equality- the property of distributing economics prosperity uniformly among the members of society 5) Opportunity cost- whatever must be given up or forgone to obtain some item 6) Rational people- people who systematically and purposefully do the best they can to achieve their objectives 7) Economics studies how we use our scare resources in production and to exchange and consume goods and services according to the prevailing economic system 8) Economic agents engage in production, exchange, specialization and consumption 9) Scarce resources are land, labor, capital resources, enterprise, the demand for which exceed the supply if they were given away free 10) Resources are the land, natural resources, labor, capital and enterprise that can be combined to produce goods and services. They are also called the factors of production 11) Scarcity exists when the amount of good or resources offered is less than what users would want if it were given away free 12) Specialization is the use of resources to their best advantage 13) Exchange is the trading of goods and services produced through specialization 14) Specialization and exchange raise material well-being 15) The arrangements and institutions that deal with scarcity are called the economics system 16) Under capitalism, resources are privately owned and people make their own economic decisions 17) Under socialism, the state owns the resources and makes the economic decisions 18) The economic problem is how to choose what products to produce; how they are to be produced; and for whom 19) Wants are what people would wish to have if the price were zero 20) The law of scarcity states the wants