Chapt 1 The Central Economic Problem Flashcards
1
Q
Cause of Scarcity
A
Unlimited wants & limited resources to achieve those wants
2
Q
Define Opportunity Cost
A
It is the loss of potential benefits from other alternatives when 1 alternative is taken over the other.
3
Q
What needs to be done because of scarcity?
A
Users need to make good decisions in allocating resources to achieve certain wants.
4
Q
Egs of limited resources in PEOPLE
A
Time, income
5
Q
Egs of limited resources in PRODUCERS
A
Raw materials, labour, Land, entrepreneurship
6
Q
Egs of limited resources in GOVTS
A
Raw materials, labour, limited budget
