1.1 - Basic Economic Problem Flashcards
1
Q
Need
A
something you cannot live without
2
Q
Want
A
something that is a luxury and not necessary for survival
3
Q
Basic Economic Problem
A
scarce resources but potentially unlimited desires
4
Q
Government
A
create policies in the interest of producers and consumers
5
Q
Producers
A
companies that sell goods/services to consumers
6
Q
Consumers
A
a person/organisation that uses a good/service
7
Q
Interdependence
A
the reliance on two or more people/things
8
Q
Opportunity Cost
A
the next best alternative forgone
9
Q
Factors of production
A
the inputs that go into production process
10
Q
Land
A
natural resources derived from the environment
11
Q
Labour
A
human workforce put into production process
12
Q
Capital
A
man-made resources used to make another good/service
13
Q
Enterprise
A
the people who risk their money to start the business
