Micro - The Economic problem ✔️ Flashcards
1
Q
The Problem of Scarcity
A
The demand for a good/service is greater than the availability of the good/service
2
Q
Non-renewable resources
A
A natural resource that cannot be readily replaced by natural means at a pace quick enough to keep up with consumption.
3
Q
State 3 examples of non-renewable resources
A
Coal
Oil
Natural Gas
4
Q
Renewable resources
A
Any natural resource that can replenish itself in a relatively short period of time, usually no longer than the length of a human life
5
Q
State 3 examples of renewable resources
A
Water
Wind Power
Solar Power
6
Q
Opportunity Cost
A
Opportunity cost is the cost of the next best alternative forgone. This is what the Economic agent is losing as a result of making a certain choice (the cost).
