Scarcity, Choice And Allocation Of Resources

Question 1

Resources

Answer 1

a service or other asset used to produce goods and services that meet human needs and wants

Question 2

Finite (non-renewable)

Answer 2

cannot be replaced once used e.g oil, coal, zinc, lithium

Question 3

Renewable

Answer 3

can (with careful management) be renewed as it is used e.g wind energy, solar energy, hydro power

Question 4

Agents (Name them and what they do)

Answer 4

Government - sets rules that other participants have to follow
Consumers - people who buy goods/services
producers(firms) - those who make the goods/services

Question 5

Needs

Answer 5

Essential for human survival (e.g food, clothing, warmth, shelter)

Question 6

Want

Answer 6

Desirable but not necessary (e.g latest pair of Jordans)

Question 7

Economic Problem

Answer 7

Wants are infinite but there are only finite resources available to satisfy these needs/wants

Question 8

Opportunity Costs

Answer 8

The next best alternative given up
e.g. Tax cuts: If G decreases income tax, OC would be that the G cannot use the extra revenue for some form of government spnding