The basic economic problem Flashcards
unit 1.1.1
1
Q
What is economics ?
A
the production, consumption and transfer of wealth
2
Q
What is the basic economic problem ?
A
needs and wants are endless but the resources to satisfy them are finite
3
Q
What are the three basic questions ?
A
- what to produce ?
- how to produce it ?
- whom to produce it for ?
4
Q
What is scarcity ?
A
limited availability
5
Q
What is trade off ?
A
when one choice is chosen in preference to another
6
Q
What is opportunity cost ?
A
the value of the next best alternative forgone
