1) The nature and purpose of economic activity Flashcards
1
Q
What is a need?
A
A need is something us humans require to survive
2
Q
What is the purpose of economic activity?
A
The main purpose of economic activity is to satisfy society’s unlimited wants and needs.
3
Q
What is a want?
A
A want is something not essential for survival, but which people feel improves the standard of living or economic welfare.
4
Q
What does economic welfare mean?
A
Economic welfare refers to the standard of living of individuals in society.
5
Q
How do we improve economic welfare?
A
Satisfying society’s wants and needs lead to increased economic welfare.
