Key Concepts 2 Flashcards
1
Q
What is scarcity?
A
Not enough resources to meet all the demands in an economy or society.
Choices are needed in the production and consumption to ensure demand is met by supply.
Example: Building health clinics vs building hospitals
An excess is one will lead to unmet wants in another
2
Q
What are the effects of increased utility across a society?
A
Increased social welfare
