The Basic Economic Problem C1 Flashcards
(4 cards)
1
Q
Define Scarcity
A
Limited resources unable to fulfil unlimited wants.
2
Q
What is the Basic Economic problem?
A
Scarcity. (Definition of scarcity)
3
Q
What is a Free Good?
A
A good that does not require resources to produce and thus has no opportunity cost.
4
Q
What is an Economic Good?
A
A good that requires resources to produce and thus has an opportunity cost.
