1.1.3 The economic problem Flashcards
1
Q
What is the basic economic problem
A
Scarcity - wants are unlimited but resources are finite
2
Q
Renewable
A
The stock level can be maintained over a period of time e.g wind power, oxygen, water and soil
3
Q
Non-renewable
A
The stock level is decreased over a period of time e.g. oil, gas, fossil fuels, copper, aliminium
4
Q
Opportunity cost:
A
The next best alternative forgone
