Economics Overview study guide

Topics: Economic system, Economics, Scarcity Pages: 21 (4008 words) Published: March 9, 2014
Economics is the study of answering the scarcity problem. Everyone faces scarcity as no resources are infinite. Since no resources are infinite we must be efficient in allocating them. Every allocation has an oppertunity cost. If you produce microwaves you produce less computers. Since we can assume consumption provides utility, we must allocate the resources to yield the greatest utility. This is called allocative efficiency

Key terms are

Utility
scarcity
allocative efficiency
oppertunity cost
economy

Economics is the study of answering the scarcity problem. Everyone faces scarcity as no resources are infinite. Since no resources are infinite we must be efficient in allocating them. Every allocation has an oppertunity cost. If you produce microwaves you produce less computers. Since we can assume consumption provides utility, we must allocate the resources to yield the greatest utility. This is called allocative efficiency

Key terms are

Utility
scarcity
allocative efficiency
oppertunity cost
economy
Economics is the study of answering the scarcity problem. Everyone faces scarcity as no resources are infinite. Since no resources are infinite we must be efficient in allocating them. Every allocation has an oppertunity cost. If you produce microwaves you produce less computers. Since we can assume consumption provides utility, we must allocate the resources to yield the greatest utility. This is called allocative efficiency

Key terms are

Utility
scarcity
allocative efficiency
oppertunity cost
economy
Economics is the study of answering the scarcity problem. Everyone faces scarcity as no resources are infinite. Since no resources are infinite we must be efficient in allocating them. Every allocation has an oppertunity cost. If you produce microwaves you produce less computers. Since we can assume consumption provides utility, we must allocate the resources to yield the greatest utility. This is called allocative efficiency

Key terms are

Utility
scarcity
allocative efficiency
oppertunity cost
economy
Economics is the study of answering the scarcity problem. Everyone faces scarcity as no resources are infinite. Since no resources are infinite we must be efficient in allocating them. Every allocation has an oppertunity cost. If you produce microwaves you produce less computers. Since we can assume consumption provides utility, we must allocate the resources to yield the greatest utility. This is called allocative efficiency

Key terms are

Utility
scarcity
allocative efficiency
oppertunity cost
economy
Economics is the study of answering the scarcity problem. Everyone faces scarcity as no resources are infinite. Since no resources are infinite we must be efficient in allocating them. Every allocation has an oppertunity cost. If you produce microwaves you produce less computers. Since we can assume consumption provides utility, we must allocate the resources to yield the greatest utility. This is called allocative efficiency

Key terms are

Utility
scarcity
allocative efficiency
oppertunity cost
economy
Economics is the study of answering the scarcity problem. Everyone faces scarcity as no resources are infinite. Since no resources are infinite we must be efficient in allocating them. Every allocation has an oppertunity cost. If you produce microwaves you produce less computers. Since we can assume consumption provides utility, we must allocate the resources to yield the greatest utility. This is called allocative efficiency

Key terms are

Utility
scarcity
allocative efficiency
oppertunity cost
economy
Economics is the study of answering the scarcity problem. Everyone faces scarcity as no resources are infinite. Since no resources are infinite we must be efficient in allocating them. Every allocation has an oppertunity cost. If you produce microwaves you produce less computers. Since we can assume consumption provides utility, we must allocate the resources...
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