Basic problem of economics Flashcards
1
Q
What is the basic problem of economics (one word)
A
Scarcity
2
Q
Why does scarcity exist?
A
People have finite needs but infinite wants, but resources are finite and limited
3
Q
Why are wants infinite?
A
As no humans would want to live at basic human living standards if they could enjoy more
4
Q
Why is scarcity a relative concept?
A
As resources aren’t necessarily scarce in themselves but rather in relation to demands placed upon them
5
Q
eg of scarcity
A
water in India and China
food shortages around the world
