, The 9 Economic concepts
scarcity -
Resources are insufficient to satisfy unlimited human needs + wants
- If there was no scarcity , there would be no social science of economics
↳ Economics studies h ow our limited resources can best be used to satisfy needs/wants
choice-choices must be made about what will be produced t what will be foregone (sacrificed)
↳ Economics studies how decision-makers choose between competing alternative options +
analyzes present/future consequences of their choices
Efficiency -
using the fewest possible resources to produce goods + services
↳ Requires that scarce resources are used to produce goods/services that mostly satisfy society's needs+ wants Callocative efficiency)
Loused as a benchmark/standard to determine the appropriateness of economic actions from the POV of minimizing resource waste
Equity -
The idea of being fair/just
Lo Not the same as equality /sameness of treatment/outcomes for people in a society
Lideas of equity +
inequity are usually identified with equality +
inequality
Economic Well-Being -
security with respect to income + wealth (job + housing)
4) Ability to pursue one's goals , work productively , and develop one's potential
Lo Ability to have a satisfactory quality of life (health , education , social connections , environmental quality , social security)
↳
Ability to maintain all of the above over time
Sustainability -
Long-term maintenance/viability of any particular activity/policy
Lo commonly used to refer to the ability of the current generation to satisfy its needs without limiting future generations' ability to satisfy their own
needs
change
↳ In economic theory : caused by a change in one or more variables
↳ In real-world events : Continuous change in the institutional , technological , social political , and cultural environments in which economic events occur
,
Interdependence
-
Economic decision-makers interact with depend on each other
↳ Economists must take into consideration both intended + unintended consequences of economic decisions + events when there is a high degree of
interdependence
Interventio - Government intervention -- Government becomes involved with the workings of markets
↳ Markets on their own cannot achieve societal goals such as equity , sustainability , economic well-being ,
or efficiency
scarcity -
Resources are insufficient to satisfy unlimited human needs + wants
- If there was no scarcity , there would be no social science of economics
↳ Economics studies h ow our limited resources can best be used to satisfy needs/wants
choice-choices must be made about what will be produced t what will be foregone (sacrificed)
↳ Economics studies how decision-makers choose between competing alternative options +
analyzes present/future consequences of their choices
Efficiency -
using the fewest possible resources to produce goods + services
↳ Requires that scarce resources are used to produce goods/services that mostly satisfy society's needs+ wants Callocative efficiency)
Loused as a benchmark/standard to determine the appropriateness of economic actions from the POV of minimizing resource waste
Equity -
The idea of being fair/just
Lo Not the same as equality /sameness of treatment/outcomes for people in a society
Lideas of equity +
inequity are usually identified with equality +
inequality
Economic Well-Being -
security with respect to income + wealth (job + housing)
4) Ability to pursue one's goals , work productively , and develop one's potential
Lo Ability to have a satisfactory quality of life (health , education , social connections , environmental quality , social security)
↳
Ability to maintain all of the above over time
Sustainability -
Long-term maintenance/viability of any particular activity/policy
Lo commonly used to refer to the ability of the current generation to satisfy its needs without limiting future generations' ability to satisfy their own
needs
change
↳ In economic theory : caused by a change in one or more variables
↳ In real-world events : Continuous change in the institutional , technological , social political , and cultural environments in which economic events occur
,
Interdependence
-
Economic decision-makers interact with depend on each other
↳ Economists must take into consideration both intended + unintended consequences of economic decisions + events when there is a high degree of
interdependence
Interventio - Government intervention -- Government becomes involved with the workings of markets
↳ Markets on their own cannot achieve societal goals such as equity , sustainability , economic well-being ,
or efficiency
