1.2 The Basic Economic Problem Flashcards
What is the Basic Economic Problem?
That people want more than the available resources in the world. Finite resources, Infinite wants.
Define a Need
Somethings consumer has to have to survive.
Define a Want
Something a consumer would like to have, but which is not essential for survival.
Define Unlimited wants
The infinite desire for something whether or not you have the means to obtain it.
What are Scarce Resources?
When there is an insufficient amount of the resource to satisfy all wants.
How is the allocation of resources decided?
What should be produced?
How should it be produced?
Whom should it be produced for?
Define Opportunity Cost?
The next best alternative given up when making a choice.
Define Economic Choice
An option for the use of selected scarce resources.
What is Economic Sustainability?
The best use of resources in order to create responsible development or growth, now and into the future.
What is Social Sustainability?
The impact of development or growth that promotes an improvement in quality of life for all, now and into the future.
What is Environmental Sustainability?
The impact of development or growth where the effect on the environment is small and possible to manage, now and into the future.
