the nature of the economic problem Flashcards
1
Q
what is the economic problem?
A
scarcity
2
Q
what are the three main economic agents?
A
individuals, firms and the govt
3
Q
what is the private sector?
A
the private sector refers to the economic activity of private individuals and firms.
4
Q
what is the public sector?
A
the public sector refers to the economic activity directly involving the government
5
Q
what is an economic good?
A
economic goods are goods that are scarce or limited in supply
6
Q
what are free goods?
A
free goods are goods that are unlimited in supply
