Topic 1, Introduction to Economics

Question 1

Economic problem

Answer 1

involves the question of how to satisfy unlimited wants with limited resources.

Question 2

Needs

necessities

Answer 2

are individual desires for the basic necessities of life, such as food and shelter.

Question 3

Wants

Answer 3

are material desires of individuals that provide some pleasure when they are satisfied. this will depend on personal preferences. Wants are said to be unlimited.

Question 4

Utility

Answer 4

is the satisfaction or pleasure that individuals derive from the consumption of goods and services.