1.1.1 the economic problem Flashcards
(5 cards)
1
Q
What is the basic economic problem?
A
Scarcity.
2
Q
What does scarcity refer to?
A
The shortage of resources in relation to the quantity of human wants.
3
Q
What is opportunity cost?
A
The opportunity cost of a choice is the value of the next best alternative forgone.
4
Q
Why might opportunity cost be important to the government?
A
May have to choose between spending more on the NHS and spending more on education. They cannot do both because of finite resources.
5
Q
A
