economic problem Flashcards
1
Q
factors of production and meaning
A
capital: man-made aids to production
enterprise: entrepreneurship
labour
land
2
Q
what is the basic economic problem
A
how to allocate scarce resources with unlimited wants
3
Q
definition of opportunity cost and where it comes from
A
def: the benefit lost from the next best foregone alternative
-this is the issue about how, who and what goods and services to produce
