Basics of Economics Flashcard Review

Front

What is Economics?

Back

The study of how people satisfy their wants and needs

Front

What is the difference between goods and services?

Back

Goods are tangible products while services are intangible products.

Front

What is the difference between wants and needs?

Back

Needs are necessary for survival while wants are not.

Front

What is Scarcity?

Back

A limited amount of resources to meet unlimited wants and needs.

Front

Why do we have scarcity?

Back

Because we do not have enough resources to satisfy all of our wants and needs

Front

Which of the following is not one of the 3 causes of scarcity?
Poor Distribution of Resources,
Increase in Taxation Rates,
Rapid Increase in Demand,
Personal Perspective

Back

Increase in Taxation Rates

Front

Which of the following is not one of the 3 solutions to scarcity?
Creating more resources,
Making better use of our resources,
Doing without something,
Hoarding resources in a shortage

Back

Hoarding resources in a shortage

Front

What is a traditional economy?

Back

An economy where goods and services are produced based on custom and tradition.

Front

What is a command economy?

Back

An economy where the government controls all aspects of production.

Front

What is a market economy?

Back

An economy where goods and services are produced based on the demand of the market.