Economic Problem Flashcards
1
Q
What is an economic good?
A
An economic good is one which has an opportunity cost in production
2
Q
What is the central purpose of economic activity?
A
The satisfaction of needs and wants
3
Q
Why is choice a necessary part of the basic economic problem?
A
Economic decisions involve an opportunity cost and limited resources have alternative uses
4
Q
What is the fundamental economic problem facing all societies?
A
What, how and for whom goods and services should be produced
