Micro 1: What Is Economics? Flashcards
1
Q
What is the fundamental/basic economic problem?
A
The fact that the individuals within an economy have infinite wants while there are scarce resources available to meet these wants
2
Q
What is scarcity?
A
The state of being in short supply, especially relative to how much something is in demand
3
Q
What is economic activity?
A
The production of goods and services to satisfy needs and wants
4
Q
What is opportunity cost?
A
The value of the next best option which is forgone when an economic decision is made
