Unit 1: Scarcity

    Cards (9)

    • What is the basic economic problem?

      Resources are scarce.
    • What is scarcity?
      When there is a finite number of resources but infinite wants and needs
    • What are factors of production?
      Land, labor, capital, and entrepreneurship. Factors mentioned in economics
    • What is the consequence of scarcity?
      Individuals and governments have to learn how to use resources in an efficient way
    • How does scarcity influence prices in a free market?
      The more scarce, the more expensive. The less scarce, the cheaper.
    • What are the types of resources?
      Renewable resources can be used repeatedly and naturally replenished, for example wind generated electricity. Non-renewable resources cannot be used repeatedly and naturally replenished.
    • What is Opportunity cost?

      The loss of the next best alternative when making a decision
    • What's the connection between opportunity cost and scarcity?
      Choices are made on how to best allocate limited resources amongst competing needs and wants.
    • What's the connection between opportunity cost and resources?
      There's opportunity cost in the allocation of resources.
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