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17 Cards in this Set
- Front
- Back
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Who makes Trade-offs?
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EVERYONE
(Business, government, common people...) |
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Trade offs effect businesses by...
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effecting the decisions on how to use land, labor and capital resources.
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Countries make trade-offs by...
(phrase) |
GUNS N BUTTA!
(Guns and butter, :D ) |
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Because of scarcity....
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it sometimes stops us from doing 2 activities at once, creating and opportunity cost.
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Scarcity exists...
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In all places at all times.
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Scarcity always exsists becuase
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needs and wants are always greater than the resource supply.
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Scarcity implies
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Limited quantities of resources to meet unlimited wants.
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Economy deals with
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the problem of scarcity.
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Goods and services are scarce because
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Land/Labor/Capital that are used to produce the Goods and services are also scarce.
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Economy requires both Human Capital and Physical Capital to...
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PRODUCE GOODS AND SERVICES.
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The three benefits of Physical Capital are
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1) Extra Time
2) More knowledge 3) More productivity |
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Physical Capital ____ for people and companies
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saves money, and is more productive,
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Scarcity is the reason...
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Why people must make choices
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Axes on a Production Possibilites Chart show
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categories of goods and services.
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Each point in a curve has a
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TRADE-OFF!
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Using factors of production to make more of one product means
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fewer resources left to make something else.
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Shortages can be caused by
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War or droughts.
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