1) Basic Economic Problem Flashcards
0
Q
What does opportunity cost mean
A
Value of next best alternative forgone
1
Q
What are the factors of production
A
⚫️labour
➡️workers
⚫️land
➡️natural resources
⚫️capital
➡️machines
➡️tools
⚫️entrepreneurship
➡️setting up new businesses
2
Q
What are economic goods
A
➡️scarce resources
➡️have opportunity costs
➡️coal and oil
3
Q
Free goods
A
➡️not scarce resources
➡️no opportunity cost
➡️air
4
Q
What does sustainable resources mean
A
➡️can be exploited over and over again
➡️because cam renew them selves
➡️forest and fish stocks
5
Q
What are non sustainable resources
A
➡️cannot be replaced when used
➡️coal and oil
6
Q
What is the basic economic problem
A
⚫infinite wants, but limited resources
