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16 Cards in this Set
- Front
- Back
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Economics |
Thestudy of peoples behaviour when faced with limited means and unlimited wants. |
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Need |
Needsare those things that we must have in order to survive. |
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Want |
Wantsare those things that we desire and make life easier, but are not necessary forsurvival. |
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FreeGoods |
Goodsand services that are plentiful in supply. As a result they have no financialcost to the user. |
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EconomicGoods |
Goodsand services that are limited in their supply and availability and thereforepeople are prepared to pay for them. |
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Scarcity |
Scarcityis a situation where there is not enough of a resource or commodity to satisfyeverybody’s needs and wants. |
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Choice |
Choice is selecting between 2 or more options. |
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Values |
Everyday beliefs and ideas that influence ourinteraction with our environment and other people. |
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OpportunityCost |
The next best choice you have forsaken to selectyour most preferred option (or the next best alternative foregone). |
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Demand |
Thequantity of a good or service that consumers are willing and able to purchaseat various prices, in a given time period. |
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DemandSchedule |
A Demand Schedule is a table that shows the quantitydemanded at each price level. |
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DemandCurve |
Theinformation from a Demand Schedule can be shown on a Demand Curve. |
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TheLaw of Demand |
“The law of demand” statesthat the higher the price of the commodity the lower the quantity demanded by the consumer and vise versa, ceteris paribus. |
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CeterisParibus |
Ceteris Paribusassumes that all the factors remain unchanged except for the price of thecommodity itself. |
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SubstituteGood |
A substitute good is a good that can beused instead of another. E.g Coca Cola and Pepsi. |
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ComplementaryGood |
A complementary good is a good that isused with another good. E.gDVD’s and DVD players. |
