1.1 The Nature of the Economic Problem

Question 1

Define Resources

Answer 1

the inputs required for the production of goods and services

Question 2

Define Scarcity

Answer 2

a lack of something (in this context, resources)

Question 3

Define an economic good

Answer 3

those which are scarce in supply and so can only be produced with an economic cost and/or consumed with a price

Question 4

Define a free good

Answer 4

those which are abundant in supply, usually referring to natural sources such as air and sunlight