1.1.3 The Economic Problem ✅

Question 1

What is the fundamental economic problem?

Answer 1

Scarcity and production and distribution of these resources.

Question 2

Define scarcity?

Answer 2

The shortage of resources in relation to the quantity of human wants. (Unlimited wants finite resources)

Question 3

What is the distinction between renewable and non-renewable resources?

Answer 3

Non-renewable resources are NATURAL and FINITE meaning they can’t be replaced, renewable resources can be REPLENISHED.

Question 4

What resources are renewable but can become extinct due to overuse? Give an example?

Answer 4

Semi-renewable, like fish which can be replenished but over use can cause the stock to become depleted and no-longer available.

Question 5

How can a sustainable consumption occur?

Answer 5

When consumption of a stock can be maintained without extinction.

Question 6

What is Opportunity cost?

Answer 6

Is the loss of the next best alternatives when making a decision.

Question 7

Talk about oppotunity cost of different economic agents?

Answer 7

Government, consumer, producers.