Scarcity and Choice Flashcards
1
Q
What is scarcity?
A
Scarcity is the gap between limited supply and unlimited wants.
2
Q
What are incentives?
A
Anything that motivates people or companies to act a certain way.
3
Q
What is regulation?
A
A rule, law or order that has to be followed.
4
Q
What is specialization?
A
The idea that people or countries should concentrate on those tasks in which they are more efficient than others.
5
Q
What is cost-benefit analysis?
A
Any major capital project should go through cost-benefit analysis. Both financial and external costs should be considered.
