1.4 scarcity choice and the allocation of recourses Flashcards
1
Q
what is the fundamental economic problem
A
scarcity = unlimited wants but limited recourses
2
Q
what does scarcity mean
A
we have to decide how to allocate scarce recourses, decided by producers, consumers and governments
3
Q
what’s opportunity cost
A
the next best alternative when you made a decision, what you are giving up when making a decision - trade off
