scarcity Flashcards
1
Q
scarcity
A
Material items have a price because they are scarce, generally the scarcer the item the higher the price.
2
Q
3 basic economics questions
A
What and how much to produce?
How to produce?
For whom to produce?
3
Q
needs
A
goods and services we need to survive generally such as food, shelter and clothing
4
Q
wants
A
goods and services we would really like to have such as fancy food, expensive clothing, big screen TVs, jewellery, conveniences.
5
Q
opportunity cost
A
The value of the next best alternative use of resources that is foregone/ sacrificed whenever a decision is made.
