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Flashcards in Basic economic problem definitions Deck (6)
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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