Economics - 1.1 Choice/Values Revision

What are Limited Means that consumers have?

• Money, Time, Skill, and Knowledge

• Food, Water, Clothing, and Shelter

• iPhone, iPad, AirPods

• Cheeseburger, Fries, Coke

What is a Need?

• Thing’s individuals must have in order to sustain life, e.g., food, clothes, shelter, and water.

• Thing’s individuals would like to have but are not necessary in order to survive, e.g., cars, phones, designer clothes.

• Income (money or wealth), time, skill, and knowledge.

What is a Want?

• Thing’s individuals must have in order to sustain life, e.g., food, clothes, shelter, and water.

• Thing’s individuals would like to have but are not necessary in order to survive, e.g., cars, phones, designer clothes.

• Income (money or wealth), time, skill, and knowledge.

What is Scarcity?

• The economic term that describes the condition of limited resources relative to wants.

• The economic term that relates to a decision between alternatives.

• The next best alternative forgone when a decision is made. It is the real cost of any decision and is the other good/service that could have been produced with the same resources.

What is Choice?

• The economic term that describes the condition of limited resources relative to wants.

• The economic term that relates to a decision between alternatives.

• The next best alternative forgone when a decision is made. It is the real cost of any decision and is the other good/service that could have been produced with the same resources.

What is Opportunity Cost?

• The economic term that describes the condition of limited resources relative to wants.

• The economic term that relates to a decision between alternatives.

• The next best alternative forgone when a decision is made. It is the real cost of any decision and is the other good/service that could have been produced with the same resources.

What is a Consumer?

• Individuals or households (a group of individuals) that consume (use) goods and services produced by producers (firms or businesses).

• Any person or organisation that uses resources (natural, human or capital goods) to create goods and services.

• Objects with a physical presence, tangible items, e.g., Timber

• What someone does for you, e.g., Builder

What is a Producer?

• Individuals or households (a group of individuals) that consume (use) goods and services produced by producers (firms or businesses).

• Any person or organisation that uses resources (natural, human or capital goods) to create goods and services.

• Objects with a physical presence, tangible items, e.g., Timber

• What someone does for you, e.g., Builder

What is a Good?

• Individuals or households (a group of individuals) that consume (use) goods and services produced by producers (firms or businesses).

• Any person or organisation that uses resources (natural, human or capital goods) to create goods and services.

• Objects with a physical presence, tangible items, e.g., Timber

• What someone does for you, e.g., Builder

What is a Service?

• Individuals or households (a group of individuals) that consume (use) goods and services produced by producers (firms or businesses).

• Any person or organisation that uses resources (natural, human or capital goods) to create goods and services.

• Objects with a physical presence, tangible items, e.g., Timber

• What someone does for you, e.g., Builder