Flashcards in Basic economic problem definitions Deck (6)
The basic economic problem
How to allocate scarce resources to satisfy unlimited needs and wants.
The chain of production
Describes how businesses from the primary, secondary and tertiary sectors work interdependently to make a product and sell it to the final customer.
Households (private individuals in society), firms that operate in the private sector of an economy and the government (the public sector of an economy).
Those which are limited in supply
Goods which are unlimited in supply, such as air or sea water