1.1.3 The Economic Problem Flashcards
1
Q
What is the basic economic problem?
A
We have infinite wants but finite resources.
2
Q
What is “opportunity Cost”
A
The cost of a choice is the value of the next best value forgone.
3
Q
What are the factors of production?
A
C - Capital (Man made factors to produce things)
E - Entrepeneurship (The willingness to take risks and produce)
L - Land (Natural resources)
L - Labour (Productive human effort)
4
Q
Renewable VS Non - Renewable energy
A
Renewable - a resource of economic value that can be replenished or replaced on a level equal to consumption.
Non - Renewable - A resource of economic value that can not be readily replaced by natural means on a level equal to consumption.
