Nature of economics-the economic problem

Question 1

the economic problem

Answer 1

there are two types of resources in the economy renewable resources and non renewable resources.
there are infinite wants-but limited resources-leading to the problem of scarcity-so we need to make choices-in terms of allocation of resources-leading to an opportunity cost

Question 2

oppurtunity cost

Answer 2

every decsion has a cost timely or monatary
therefore this creates an oppurtinity cost the benefit given up of the next best alternative

Question 3

factors of production

Answer 3

resources needed to produce stuff-land(potatoes,sheep,trees) capital-technology or machinery (fryer or computer) labour (workers) enterprise

Question 3

what is an economy

Answer 3

an economy is a system that tries to solve the economic problem, or the problem of scarcity