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Key Concepts of Economics, scarcity-microeconomics-economic-problem-clip…
Key Concepts of Economics
Scarcity
Scarcity is a crucial concept in Economics. It is defined as a resource's limited availability in contrast to its infinite demands. Scarcity may apply to any natural resource.
Choice
Choice exists in Economics because resources are scarce and therefore you have to make decisions understanding you are sacrificing one item for another. After a choice is made on a large-scale, Economists will explore the pros and cons.
Efficiency
Efficiency can be measured using the ratio of useful output to total input. It is important to effectively use resources with a short supply.
Equity
Equity is fairness in terms of distribution of income, wealth, and economic chances. Equity differs all around the world and has become an important topic that many people have different views on.
Economic well being
Economic well-being measures the value of life in an economy. Similar to equity, each individual economy looks at well being differently.
Sustainability
In economics, sustainability is the effect that the current generation will have on the future. For example, a lack of resources is something that is becoming a problem for the future.
Change
Economic change, is any adaptation in an economy, causing economists to think and adjust accordingly.
Interdependence
When many groups such as: consumers, firms, and governments connect between each other to accomplish economic objectives.
Intervention
Intervention is when a Government intervenes in an economy to help markets that are on the verge of failing. However, government intervention has become a topic of debate as people have different views on how much support governments should give.
