The Basic Econ Problem Flashcards
1
Q
What is the Economic Problem?
A
The issue of scarcity of the goods and resources. Leading to the problem of whom to allocate the goods to and whom decides where the goods are allocated.
2
Q
What is Scarcity?
A
Limited resources in comparison to human wants
3
Q
What is Choice?
A
Due to scarcity choice is limited from the limited resources
4
Q
What are Needs?
A
Neccessities of human life
5
Q
What are Wants?
A
They are infinite but resources are limited
6
Q
What does the clash of choice, needs, wants and scarcity create?
A
Impossible to satisfy everyones wants and needs due to limited choice deriving from scarcity. Creating basic econ prob.
