1.1 microeconomics the economic problem Flashcards
1
Q
What is ceteris paribus?
A
The means of all things being equal
2
Q
Define opportunity cost
A
The benefit forgone of the next best alternative
3
Q
Explain the difference between a “want” and “need”
A
Need - Basic necessity needed for survival
Want - Is anything that is not a need
4
Q
What is the economic problem?
A
Resources are scarce, wants are infinite
5
Q
A
