Ch1 Scarcity, Choice and Opportunity Cost 稀缺、选择、机会成本

Front

What is the fundamental economic problem?

Back

Resources are scarce but wants are unlimited.

Front

What are resources in economics?

Back

Inputs used to produce goods and services.

Front

What are wants and needs in economics?

Back

Wants are goods and services that people may like but do not always obtain. Needs are essential for survival.

Front

Why does scarcity occur?

Back

Because people's wants and needs exceed the available resources.

Front

Why must individuals, businesses, and governments make choices?

Back

Because their resources are scarce relative to their wants and needs.

Front

What is opportunity cost?

Back

The cost of the next best alternative that is forgone when a choice is made.

Front

What are the three basic problems of resource allocation?

Back

1. What to produce—Which goods and services to produce and how much
2. How to produce—How to utilize resources to achieve maximum output
3. For whom to produce—Will some people get more, or will everyone get the same.

Front

Why must choices be made when preparing a budget?

Back

Because resources from taxation are limited, but the demands in terms of possible expenditures are unlimited.

Front

How is opportunity cost used in budgeting?

Back

After determining the budget size, it is used to identify the cost of the best alternative and to prioritize expenditures based on the choices that may yield the greatest benefit.