Scarcity, Choice + Opportunity Cost Flashcards
1
Q
What is relative scarcity
A
resources are limited relative to society’s unlimited wants. wants can never be satisfied.
2
Q
what is a free good
A
a good with no price like the environment
3
Q
explain water in relation to free goods
A
water has a low price despite its crippling scarcity
4
Q
what is opportunity cost
A
the value of the best alternative you give up when you make a decision.
