1.1.2 the concept of relative scarcity & resources used to satisfy needs and wants

Question 1

What is a need?

Answer 1

Are the necessities of life. Society cannot function without these.

Question 2

What is a want?

Answer 2

Goods and services that satisfy beyond needs.

Question 3

What are resources?

Answer 3

Utilised in the economic production of society’s needs and wants

Question 4

What are the different types?

Answer 4

1. Capital
2. Labour
3. Natural

Question 5

Define capital

Answer 5

Unatural resource used in the stock of past production which results in current and future production.

Question 6

Define labour

Answer 6

The ability of an individual to provide his/she’s intellectual skills, manual labour, and knowledge as a member of the nation’s labour force.

Question 7

Define natural

Answer 7

Productive inputs that orginate in nature include soil used for agriculture and forests.

Question 8

What is the problem with relative scarcity?

Answer 8

Unlimited wants vs limited supply results in decisions about how to best allocate resources to satisfy society’s wellbeing