1.3 The Economic Problem Flashcards
1
Q
What is the Economic problem?
A
Difference between scarce resources & infinite wants and needs
2
Q
What does the economic problem lead to?
A
- What to produce?
- How to produce?
- Who to produce for?
3
Q
Main factors of production?
A
CELL
4
Q
What is opportunity cost?
A
Value of the next best alternative foregone
