5 Questions
What term refers to desires fulfilled by buying goods or services?
Wants
Which economic resource includes natural resources, capital, and labor?
Capital
Why do economic decisions revolve around three basic questions according to the text?
To address scarcity
What fundamental questions guide economic decisions according to the text?
What to produce, how to produce, who will use it
What challenge do countries face in making economic decisions according to the text?
Limited resources
Study Notes
- Economics involves studying how people make choices to satisfy unlimited wants and needs with limited resources.
- Wants are desires fulfilled by buying goods or services, where goods are physical products and services are actions provided.
- Resources in economics include natural resources, capital, and labor, all of which are limited, leading to scarcity.
- Economic decisions revolve around answering three basic questions: what to produce, how to produce it, and who will use it.
- Countries face similar economic decisions with limited resources, needing to prioritize spending on goods and services.
Test your knowledge on the basics of economics, including wants, resources, scarcity, and economic decision-making at individual and country levels.
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