Resources (Week 1) Flashcards
What is a renewable source
A resource, eg wood, that with careful management can be renewed as it is used
What can non renewable resources be split into
Recyclable and non-recyclable resources
Why is clean air and water scarce and not free
Because of the need to get rid of the effects of pollution created by humankind
Why does the fundamental economic problem exist
Because both goods and the resources and the resources to produce goods are scarce.
What is the fundamental economic problem
How best to make decisions about the allocation of scarce resources among competing uses so as to improve and maximise human happiness and welfare
What is opportunity cost
The cost of giving up the next best alternative
What is budget constraint
When people have to think carefully about how to spend their limited incomes
What is inter-temporal choice (/choice over time)
The choice between income now and income in the future
What is a finite resource
A resource, eg oil, which is scarce and runs out as it is used. Aka a non renewable resource.
