Scarcity Flashcards
What is the basic economic problem?
Humans have unlimited needs and wants that need to be satisfied with limited resources.
What is scarcity?
Unlimited needs and wants that needs to be satisfied with limited resources.
What is absolute scarcity?
When there is absolutely so resources available to satisfy the existing demand for goods and services.
What is relative scarcity?
Occurs when there are not enough resources available to produce enough to satisfy peoples needs and wants, some people have to go without.
What are economic goods?
Are available in limited quantities and does command a price.
What are free goods?
freely available and do not command a price.
What are the main differences between absolute and relative scarcity?
Absolute has no resources available to satisfy demand while relative is when there is not enough but some may get.
What is opportunity cost?
The value of the best forgone opportunity
