The Economic Problem Flashcards
What is the basic economic problem?
The basic economic problem is a challenge with face that is scarcity of resources available to produce the goods and services to satisfy the unlimited human once and needs
What is scarcity?
Scarcity means that there are not enough resources to satisfy everyone’s needs and wants
What is opportunity cost?
Opportunity cost is the next best alternative choice sacrifice
What is the main aim of a firm?
Profit maximization
What is an economic good?
An economic good is a good or service that incurs a benefit to the society. They have a degree of scarcity and therefore have an opportunity cost.
What is a free good?
A resource that is available abundantly such as sunlight or air
What is economic inequality?
Economic inequality refers to the differences in wealth and income
