Th1.1: The Economic Problem Flashcards
1
Q
How is scarcity a relative concept?
A
the resources are not necessarily scarce themselves but they are scarce in relation to the demands placed upon them
2
Q
How do economies try to solve the economic problem?
A
By figuring out what to produce, how to produce it and for whom production should take place
3
Q
What is the opportunity cost? (not definition)
A
the thing you do not consume
4
Q
What are the four factors of production?
A
Land, labour, capital and enterprise
