The Economic Problem Flashcards
1
Q
What do economist mean by resources ? CELL
A
Capital ( man made , machinery or money )
Entrepreneurship ( willingness to take risks and be innovative)
Land ( anything the Earth can produce, natural resources, oil & food)
Labour ( people’s time)
2
Q
CELL is factors of what ?
A
Capital, entrepreneurship, labour and land are factors of production
3
Q
What is an opportunity cost ?
A
The value of the next best alternative foregone when making a choice
4
Q
What is the economic problem?
A
Is that we have infonaut want but that we have scarce resources (e.g fuel , time )
5
Q
What does PPC stand for on opportunity cost diagrams ?
A
PPC: Production Possibility Curve
