Chapter 8.3 Flashcards
1
Q
What are the three economic questions?
A
- What to produce?
- How to produce
- For whom to produce?
2
Q
The economic problem is caused due to relative scarcity. Explain this problem.
A
The economic problem of having unlimited needs and wants with only limited resource/means to satisfy them.
3
Q
What is opportunity cost?
A
Opportunity cost is when a consumer has to choose between 2 or more options where each option offers a certain degree of satisfaction but cannot pick multiple. If the consumer picks option 1 over the other options, then the other options are the opportunity cost.
