Questions and Answers
What is the basic economic problem characterized by the insufficiency of goods to fulfill everyone's desires?
Scarcity
Which of the following is an example of a 'want' as per the text?
Video Games
What are the two categories into which factors of production are classified?
Land and Labour
Which of the following is not considered a factor of production?
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What are goods or services essential for living referred to as in the text?
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Study Notes
Basic Economic Problem
- The basic economic problem is characterized by the insufficiency of goods to fulfill everyone's desires.
Wants
- A want is an example of a desire that can be satisfied through the consumption of a particular good or service.
Factors of Production
- Factors of production are classified into two categories: human resources (labour) and natural resources (land, capital, and entrepreneurship).
Non-Factor of Production
- Money is not considered a factor of production.
Goods and Services
- Goods or services essential for living are referred to as necessities.
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