Introduction to economics

Question 1

Relative scarcity

Answer 1

As a society we (consumers & producers) have, unlimited wants and needs, yet limited resources to satisfy them. ​

This leads to an opportunity cost

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Question 2

Wants and Needs

Answer 2

Needs- the basic goods and services that are necessary for our survival​

Wants- something we desire to have to improve our satisfaction or quality of life, but that is not necessary for our survival ​

Question 3

Resource types

Answer 3

Natural resources are the productive inputs that occur in nature

Labour resources are the intellectual skills, knowledge and manual effort that people provide as members of the nation’s labour force

Capital resources - Capital is seen as the stock of past production that is used to aid current and future production.