4.1 - 1.4 Scarcity, choice and the allocation of resources Flashcards
1
Q
The economic problem
A
How can the available scarce resources be used to satisfy peoples infinite needs and wants as effectively as possible.
2
Q
Meaning of scarcity
A
There are limited resources available to satisfy our wants and needs
3
Q
Opportunity Cost
A
This is the cost of the next best alternative foregone or not chosen.
