The Economic Problem Flashcards
1
Q
Define Goods
A
They are tangible objects that can be held, seen touched, felt and held. They can also be consumed.
2
Q
Define Services
A
They are activities or experiences. They are provided by other people or businesses
3
Q
What is the Economic Problem
A
Unlimited wants but limited resources
4
Q
Define Scarcity
A
The world resoruces are finite but the peoples wants are infinite
5
Q
What is opportunity cost
A
The cost of the next possible alternative.
6
Q
Define Land
A
Earth resources
7
Q
Define Labour
A
Humans/workers
8
Q
Capital
A
Machines
9
Q
Enterprise
A
Managing resources
10
Q
Would you rather buy a car or a bike
A
Oppirtunity cost
