Economics Definitions

Define Economics

• The study of how people choose to use their scarce resources to satisfy their unlimited wants
• Land, labour, capital, entrepreneurs
• When there is not enough of something (good, service, resource) to satisfy everyone's wants, at a zero price
• The cost of the next best alternative forgone

Define Resources

• The study of how people choose to use their scarce resources to satisfy their unlimited wants
• The cost of the next best alternative forgone
• Goods/services that you would like to have but are not necessary for survival e.g. Netflix
• Land, labour, capital, entrepreneurs

Define Scarcity

• The cost of the next best alternative forgone
• When there is not enough of something (good, service, resource) to satisfy everyone's wants, at a zero price
• Goods/services that you would like to have but are not necessary for survival e.g. Netflix
• Limited time, skills, and money to satisfy wants

Define Opportunity Cost

• The cost of the next best alternative forgone
• Goods/services that you would like to have but are not necessary for survival e.g. Netflix
• Limited time, skills, and money to satisfy wants
• Land, labour, capital, entrepreneurs

Define Needs

• Limited time, skills, and money to satisfy wants
• When there is not enough of something (good, service, resource) to satisfy everyone's wants, at a zero price
• Goods/services required for survival e.g. food
• The study of how people choose to use their scarce resources to satisfy their unlimited wants

Define Wants

• Limited time, skills, and money to satisfy wants
• Goods/services that you would like to have but are not necessary for survival e.g. Netflix
• When there is not enough of something (good, service, resource) to satisfy everyone's wants, at a zero price
• The study of how people choose to use their scarce resources to satisfy their unlimited wants

Define Limited Means

• Land, labour, capital, entrepreneurs
• The cost of the next best alternative forgone
• Limited time, skills, and money to satisfy wants
• The study of how people choose to use their scarce resources to satisfy their unlimited wants

Define Consumer

• Individuals in an economy who demand (want and need) goods and services
• Goods and Services
• People in the working age population who are willing and able to work
• One or more persons living in a dwelling

Define Household

• Individuals in an economy who demand (want and need) goods and services
• One or more persons living in a dwelling
• Relying on each other. Mutual reliance.
• Businesses in an economy that produce goods and services

Define Producer

• People in the working age population who are willing and able to work
• One or more persons living in a dwelling
• Individuals in an economy who demand (want and need) goods and services
• Businesses in an economy that produce goods and services