Scarcity, choice and allocation of resources Flashcards
1
Q
basic economic problem
A
scarce economic resources compared with society’s unlimited wants (therefore choices must be made when deciding how to allocate these resources)
2
Q
Allocation of resources
A
what to produce?
how to produce?
for whom to produce?
3
Q
opportunity cost
A
when you choose one use, they must forego the next best alternative use.
