Scarcity, Choice And Opportunity Cost Flashcards
1
Q
What is implied by existence of scarcity
A
That humans are forced to make choices over which goods to consumer and produce over others.
2
Q
What is opportunity cost
A
The benefit lost from not choosing the next best alternative
3
Q
What’s the difference between an economic and free good
A
Free goods are infinite, non-rivalrous and no price
