L2: Relative Scarcity

Question 1

Relative Scarcity = ?

Answer 1

Wants and needs > resources

Question 2

Definition of Relative Scarcity

Answer 2

Consumers and producers have, unlimited wants and needs, yet limited resources to satisfy them

Question 3

Needs

Answer 3

The basic goods and services necessary for out survival

Question 4

Wants

Answer 4

Something g we desire to have to improve our satisfaction or quality of life, but that is not necessary for our survival.

Question 5

The 3 different types of resources

Answer 5

1 - Natural resources
2 - Labour Resources
3 - Capital Resources

Question 6

Natural resources

Answer 6

The productive inputs that occur in nature
IE: Trees, forests, native animals, oceans, climate, clean air

Question 7

Labour resources

Answer 7

The intellectual skills, knowledge, and manual effort that people provide as members of the national labor force
IE doctor, mechanic, retail assistant, banker

Question 8

Capital resources

Answer 8

Equipment or resources involved in manufacturing and producing goods.
IE a tractor,a physical plant, factories

Question 9

The aims of certain groups

Answer 9

Consumers - Aim is to maximise own living standards
Businesses - Aim to maximise profits
Government - AIm to maximise the living standard of the nations people.

Question 10

The aims of certain groups

Answer 10

Consumers - aim is to maximize own living standards
Businesses - Aim to maximize profits
Government - AIm to maximize the living standard of the people of the nation.