Chapter 1- Basic Economic Problem Flashcards
1
Q
o Resources
A
o Resources: factors used to produce goods and services
2
Q
o The Economic Problem
A
o The Economic Problem: unlimited wants exceeding finite resources
3
Q
o Scarcity
A
o Scarcity: A situation when there is not enough to satisfy what everyone wants
4
Q
o Opportunity Cost
A
o Opportunity Cost: the best alternative forgone
5
Q
Economic Good
A
a product which requires resources to produce and therefore has an opportunity cost
6
Q
Free Good
A
a product which does not require resources to produce and hence doesnt have an opportunity cost
