1.1 Scarcity, Choice And Opportunity Cost Flashcards
1
Q
Meaning of scarcity
A
Scarcity refers to a condition where there are insufficient resources to satisfy all the needs and wants of people
2
Q
Meaning of needs
A
The necessities people must have in order to survive such as food shelter and clothing
3
Q
Meaning of wants
A
Demand for the goods and services that are not considered to be necessary for survival but are desires
4
Q
Meaning of opportunity cost
A
The next best alternative that is forgone as a result of making a choice
