Basic Business Concepts Flashcards
1
Q
What is the difference between needs and wants?
A
Needs are things that are necessary for your survival while wants are things that are not absolutely necessary for your survival just things you would like to have.
2
Q
What does scarcity mean?
A
Scarcity means limited resources used in satisfying unlimited human wants.
3
Q
What is ‘choice’?
A
‘Choice’ is an act of selecting among many unlimited wants.
4
Q
What is an ‘opportunity cost’?
A
It is the cost of the next best alternative forgone as a result of making a decision.
