the economic problem Flashcards
1
Q
Factors of productions
A
land, labour, enterprise, capital
2
Q
Limited resources
A
economic problem - unlimited wants – scarcity – choice is necessary – leads to opportunity cost
3
Q
What is opportunity cost
A
Opportunity cost is the thing you don’t buy, do you buy the fighter jet or the hospital, if you buy the fighter jet then the hospital becomes the opportunity cost
