Economic problems

About this deck

This deck includes 20 flashcards covering economic good, free good, renewable resource, and related concepts. Use it to review key Economics ideas, focus on weak cards, and prepare for your exam with StudyLess.

1. 01

   What is scarcity

   When a particular commodity is not enough to satisfy all human wants completely

2. 02

   What is an economic good

   Scarce resources that have a cost of production and an opportunity cost

3. 03

   What is a free good

   Goods that are available in abundance that has no cost of production or opportunity cost

4. 04

   Can a free good become an economic good? And when

   Yes. When a free good involves a cost it becomes an economic good

5. 05

   What is opportunity cost

   Opportunity cost is the value of next best alternative forgone in order to obtain the best.

6. 06

   What are the basic economic questions

   1. What to produce 2. How to produce 3. For whom to produce

7. 07

   What are the factor of production

   1. Land 2.labour 3. Capital 4. Enterprise

8. 08

   What is the reward for land

   Rent or lease payment

9. 09

   What is land

   All natural resources

10. 10

    What is labour

    All kinds of human effort whether physical, mental, skilled or unskilled which is done for a reward other than the pleasure derived from it.

11. 11

    Reward for labour

    Wage or earnings

12. 12

    What is the value of a worker called

    Human capital

13. 13

    What is capital

    Man-made resources which are used in the production of goods and services

14. 14

    Reward for capital

    different types of income from renting or leasing physical assets.

15. 15

    What is enterprise

    Entrepreneurs are individuals who seek out profitable opportunities for production and taking risks in attempting to exploit these.

16. 16

    Reward for enterprise

    Profit

17. 17

    What is a non renewable resource

    Economic resource that cannot be replaced or replenished once used

18. 18

    Renewable resource

    Economic resource which is not depleted by use

19. 19

    What is working or circulating capital

    These include those things which change their form in the production proces

20. 20

    What is fixed capital

    Fixed capital refers to things which are long-lasting and which do not change their form in the production process.