Economic activity Flashcards
1
Q
What is the difference between a need and a want?
A
A need is anything required for survival
A want is anything that sommeone desires, or would like to have
2
Q
What is the central purpose of economic activity?
A
To allocate limitted resources to meet the unlimited wants and needs of individuals and society as a whole
3
Q
What are the key economic decisions?
A
opportunity costs, economic rents and incentives
4
Q
What is equilibrium price?
A
Where supply and demand are equal or near to equal
5
Q
What is revenue?
A
The income that a firm receives from the sale of a good or service to its customers
6
Q
A
