1.1 The Economic Problem Flashcards
1
Q
What is the study of economics?
A
The study of economics is how to allocate these resources in the best possible way.
2
Q
What are needs?
A
Something essential to survive.
3
Q
What are wants?
A
Something that you would like but is not essential to survival.
4
Q
What are resources?
A
Resources are something used to produce output.
5
Q
What is productivity?
A
Output per worker per period of time.
6
Q
What are the four factors of productions?
A
Land, labour, capital and enterprise.
7
Q
What is the economic problem?
A
The economic problem is that there is a scarcity of resources.
