Chapter 1. Introduction Flashcards Preview

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Flashcards in Chapter 1. Introduction Deck (7)
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1
Q

What is scarcity?

A

a situation in which available resources/factors of production are finite whereas wants are infinite

2
Q

What are two features of a scarce resource?

A

A scarce resource is desirable and limited

3
Q

What has to be made as a result of scarcity?

A

Choices

4
Q

What is economics?

A

study of choices leading to the best possible use of scarce resources in order to best satisfy unlimited human needs and wants

5
Q

What is an opportunity cost?

A

value of the best alternative that must be sacrificed to obtain something else

6
Q

What are the three basic economic questions that must answered by any economic system?

A

What to produce
How to produce
For whom to produce

7
Q

What are the four factors of production?

A

Land
Labour
Capital
Entrepreneurship