1.1 The nature of the economic problem Flashcards
1
Q
What is the basic economic problem
A
Wants are unlimited but resources are scarce (finite)
2
Q
What do governments, consumers, producers and workers do about the problem of scarcity
A
They decide how to efficiently allocate their resources
3
Q
What are human wants
A
Non-essential desires
4
Q
What are human needs
A
Necessities
5
Q
What is an economic good
A
- Economic goods are scarce in relation to their demand
- Producers will supply them to make a profit
6
Q
What is a free good
A
- Abundant in supply
- Not possible to make a profit supplying it
