Macroeconomics Flashcards
1
Q
Relative price definition
A
Price of a commodity as it compares to another. The relative price is usually presented as a ratio between the two prices.
2
Q
Allocation of resources definition
A
Resource allocation is the assignment of available resources to various uses
3
Q
Relative scarcity definition
A
nation’s resources are limited when compared to the demands placed upon them. This creates an ‘imbalance’ that is referred to as the problem of relative scarcity.
4
Q
Opportunity cost definition
A
the loss of other alternatives when one alternative is chosen.
