Scarcity And Choice

Question 1

What is a need

Answer 1

A need is something essential for survival

Question 2

What is a want

Answer 2

A want is anything that we would like to have but we do not need to survive

Question 3

What is Economics

Answer 3

• Economics is the study of how people, businesses and governments who have limited resources (for example money), make choices and decisions to meet their needs and wants.

Question 4

Economic resources

Answer 4

• Economic resources are the factors (things) used to produce and distribute goods, services and wealth.

Question 5

Opportunity cost

Answer 5

• An opportunity cost is the item you do not buy in order to buv another
item.

FOR YOUR ANSWER PUT THE ITEM YOU DID NOT BUY NOT THE AMOUTN OF MONEY

Question 6

Financial cost

Answer 6

The financial cost is the price of the item vou choose to buy.

Question 7

Ration choice

Answer 7

• A rational choice is one where the expected gains outweigh the expected losses.

Question 8

Factors of production

Answer 8

• The Factors of Production are the economic resources needed to produce goods and services.