The Economic Problem Flashcards
1
Q
economics is
A
how to best satisfy infinite desires using limited resources
2
Q
basic economic problem
A
how can the available scarce resources be used to satisfy people’s infinite needs and wants as effectively as possible.
3
Q
There are four factors of production
A
land: including all the natural resources in and on it.
Labour: the work done by people
Capital: equipment used in producing goods and services.
Enterprise: willingness to take a risk to make a profit.
4
Q
Scarcity requires
A
the careful allocation of resources
5
Q
economics agents
A
react to incentives
6
Q
what are the 3 economics agents
A
producers
consumers
governements
