Unit one: Microeconomics
what makes a good scarce?
-Limited in quantity -desirable - more than one use
Wants/Needs
a need is something essential for survival eg. food. A want is something desirable but not essential to survival eg. coke.
Shortages/ Surpluses
A shortage occurs when the quantity demanded for a good exceeds the quantity supplied at a specific price. A surplus occurs when the quantity supplied of a good exceeds the quantity demanded at a specific price.
comparitive advantage
An economy's ability to produce a good or service at a lower opportunity cost then it's trading partners
Scarcity
Demand for good or service is greater than the availability
Economics
Study of scarcity, use of resources and production of goods and services
Price
The amount of money that has to be paid to get a good or service
Value
The measurement of the benefit derived from a good or service to an individual or company
opportunity cost
value of the next highest valued alternative use of that resource