Chapter 1 Flashcards
(4 cards)
1
Q
Opportunity cost
A
the cost of any possible alternative when making a choice.
2
Q
What are the key economic decisions?
A
what to produce?
how to produce?
who is to benefit from the goods and services produced?
3
Q
purpose of economic activity
A
The purpose of economic activity is the production of goods and services to satisfy the ever-changing needs of society.
4
Q
Basic Economic Problem
A
People have an unlimited set of wants and needs but we have a limited amount of resources
