Basic economic problem definitions Flashcards
(6 cards)
1
Q
The basic economic problem
A
How to allocate scarce resources to satisfy unlimited needs and wants.
2
Q
The chain of production
A
Describes how businesses from the primary, secondary and tertiary sectors work interdependently to make a product and sell it to the final customer.
3
Q
Economic agents
A
Households (private individuals in society), firms that operate in the private sector of an economy and the government (the public sector of an economy).
4
Q
Economic goods
A
Those which are limited in supply
5
Q
Free goods
A
Goods which are unlimited in supply, such as air or sea water
6
Q
Goods
A
Physical
