1.1.4 Scarcity, choice and the allocation of resources

Question 1

fundamental economic problem is…

Answer 1

scarcity and that it
results from limited resources and unlimited wants.

Question 2

Scaricty

Answer 2

means that choices have to be made about how scarce resources are allocated between different uses.

Question 3

3 questioned to be considered

Answer 3

1. What to produce and in what quanities?
2. How should goods and services be produced?
3. To whom should goods and services be allocated?

Question 4

Opportunity cost

Answer 4

the cost of the next best alterntive that you give up when you have a choice to make