Scarcity, Choice And The Allocation Of Resources Flashcards
1
Q
What is the fundamental economic problem
A
Scarcity
2
Q
What does it mean by finite planet?
A
Where resources are limited
3
Q
What are the two ways resources should be rationed?
A
Market mechanism or government planning
4
Q
What is rationing
A
Allocating scarce resource when demand exceeds supply
5
Q
What is health rationing
A
Demand for health services
6
Q
What is cash rationing
A
Taking larger notes out of circulation to reduce money laundering
7
Q
What is ticket rationing
A
Demand for tickets exceeds stadium capacity
8
Q
What is a trade off
A
Choosing one thing that gives up another
