The Basic Economic Problem Flashcards
1
Q
Define SCARCITY
What is meant by the BASIC ECONOMIC PROBLEM?
A
2
Q
Explain methods of REDUCING THE IMPACT of scarcity
A
3
Q
Compare SCARCITY with SHORTAGE
A
4
Q
Explain, using examples, how the basic economic problem of scarcity leads to choices for firms.
A
5
Q
Explain why consumers, producers and governments are faced with choices.
A
6
Q
What is OPPORTUNITY COST?
A
7
Q
Explain Opportunity Costs, using a PPC Diagram?
A
8
Q
Distinguish, using examples, between ECONOMIC GOODS and FREE GOODS.
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9
Q
Can you explain how the COMMAND / PLANNED ECONOMY attempts to manage scarcity.
A
10
Q
Can you explain how the FREE MARKET ECONOMY attempts to manage scarcity.
A
11
Q
Can you explain how the MIXED ECONOMY attempts to manage scarcity.
A
