The economic problem 1.1.3

Question 1

what is the problem of scarcity

Answer 1

This is when people have finite needs but infinite wants. Although wants are finite, resources are finite and limited.

Question 2

Renewable resources

Answer 2

resources that can be replaces naturally after use e.g. solar energy, wind power, wood and fish

Question 3

Non renewable resources

Answer 3

this is when continued consumption will eventually lead to resources of exhaustion e.g. fossil fuels, platinum, copper

Question 4

Opportunity costs

Answer 4

it’s when the cost of one thing in terms of the next best option has to be given up as the same resources cannot be used to produce different goods at the same time