Scarcity

Question 1

Scarcity

Answer 1

Unlimited wants, limited resources

Question 2

Scarcity exam

Answer 2

Scarcity is unlimited wants and limited resources. This means the company/consumer/government can’t get all the wants/needs. Also because of our unlimited wants and limited resources we have to make choices. The sacrifice of the second best opportunity is called opportunity cost.

Question 3

What are the four factors of production

Answer 3

Land,Labour,Capital and enterprise

Question 4

Factors of production plus examples and definitions

Answer 4

Land, all natural resources, for example fish, coffee beans and water. Labour, all the human workforce, for example banker, fisherman and lawyer. Capital all man made resources, for example fishing rods, hammer and screwdriver. Finally enterprise, the thing that kick started the company, for example risk taking, money and organisation

Question 5

Define needs

Answer 5

Something you can’t survive without. For example, warmth, water and food

Question 6

Define wants

Answer 6

Something you would like to have. For example TV, CDs and phones

Question 7

Define opportunity cost

Answer 7

It is the sacrifice of second best. For example health or education, food or medicine, new car or new TV