Introduction to Economics Flashcards
1
Q
Outline the economic problem
A
The economic problem: Unlimited wants, scarcity of resources. As a consequence, as there is a scarcity of resources, choices must be made as to what wants must be satisfied. This will determine where resources are allocated; what to produce and how much to produce.
2
Q
Identify the 4 economics decisions of an economy
A
- What to produce
- How much to produce
- How to produce
- How production will be distributed
3
Q
How does Australia address the last economic decision (i.e how to distribute)
A
