ECO1 Consumer Choice & Demand #1

Scarcity

• Those things that are necessary / must have for survival

• The situation which occurs because of limited means with which to satisfy unlimited wants and needs

• An economic decision between two or more alternatives

• Time, money, skills, family / whanau

Opportunity Cost

• The next best option missed out on (when a choice is made)

• A disagreement which occurs when individuals / groups have different value positions in relation to a decision being made

• The situation which occurs because of limited means with which to satisfy unlimited wants and needs

• An economic decision between two or more alternatives

Conflict

• A disagreement which occurs when individuals / groups have different value positions in relation to a decision being made

• The next best option missed out on (when a choice is made)

• A decision made which considers two or more value positions

• Strongly held beliefs / ideas / opinions which people consider important in their lives and that influence their decisions

Consumer

• Any individual or group that uses resources to create goods and services

• One or more people who live in the same dwelling (house / flat / apartment etc.)

• Any individual or household who buys goods or services

• Those things we desire, but are not needed for survival

Needs

• Goods that are plentiful and therefore have no cost

• Time, money, skills, family / whanau

• Those things we desire, but are not needed for survival

• Those things that are necessary / must have to stay alive (for survival)

Values

• An economic decision between two or more alternatives

• A disagreement which occurs when individuals / groups have different value positions in relation to a decision being made

• Strongly held beliefs / ideas / opinions which people consider important in their lives and that influence their decisions

• A decision made which considers two or more value positions

Limited Means

• Time, money, skills, family / whanau

• An economic decision between two or more alternatives

• Food, water, and shelter

• The next best option missed out on (when a choice is made)

Goods

• Are resources - include natural, human and capital goods

• What someone does for you (are intangible)

• Time, money, skills, family / whanau

• Items / objects which have a physical presence (are tangible)

Wants

• Those things we desire, but are not needed for survival

• Those things that are necessary / must have to stay alive (for survival)

• Time, money, skills, family / whanau

• The quantity of a good or service that a consumer is willing and able to sell at various prices

Compromise

• An economic decision between two or more alternatives

• A decision made which considers two or more value positions

• An economic decision between two or more alternatives

• A disagreement which occurs when individuals / groups have different value positions in relation to a decision being made