Chapter 1: The nature of the economic problem Flashcards
1
Q
Resources
A
Factors used to produce goods and services
2
Q
The economic problem
A
Unlimited wants exceeding finite resources
3
Q
Scarcity
A
A situation where there is not enough to satisfy everyone’s wants
4
Q
Economic good
A
A product which requires resources to produce it and therefore has an opportunity cost
5
Q
Free good
A
A product which does not require any resources to make it and so does not have an opportunity cost (e.g. Sunlight)
