The Basic Economic Problem Flashcards
1
Q
What is the Basic Economic Problem?
A
As we have unlimited wants but limited resources, we have a situation of scarcity.
2
Q
What is scarcity?
A
When there is not enough for everybody to get what they want.
3
Q
What three decisions do we have to take? (allocation of resources)
A
What to produce? Who to produce it for? How to produce it?
4
Q
3 examples of needs
A
Food, water, housing, fresh air, health care, security…
5
Q
3 examples of wants
A
Sweets, TV, money, games, clothes, phone… (infinite)
