Chapter 1. Introduction Flashcards
1
Q
What is scarcity?
A
a situation in which available resources/factors of production are finite whereas wants are infinite
2
Q
What are two features of a scarce resource?
A
A scarce resource is desirable and limited
3
Q
What has to be made as a result of scarcity?
A
Choices
4
Q
What is economics?
A
study of choices leading to the best possible use of scarce resources in order to best satisfy unlimited human needs and wants
5
Q
What is an opportunity cost?
A
value of the best alternative that must be sacrificed to obtain something else
6
Q
What are the three basic economic questions that must answered by any economic system?
A
What to produce
How to produce
For whom to produce
7
Q
What are the four factors of production?
A
Land
Labour
Capital
Entrepreneurship
