The Economics of Scarcity

<p>A lack of resources.</p> Signup and view all the answers

<p>There are finite resources and unlimited wants.</p> Signup and view all the answers

<p>Resources = Inputs required for the production of goods and services Scarcity = A lack of something (in this context, resources) Economic goods = Goods that are scarce in supply and so can only be produced with an economic cost and/or consumed with a price Free goods = Goods that are abundant in supply, usually referring to natural sources</p> Signup and view all the answers

<p>There is a scarcity of resources to satisfy all human wants and needs = Fundamental economic problem An economic good is a good with an opportunity cost = Definition of economic goods There are finite resources and unlimited wants = Key aspect of the economic problem All the goods we buy are economic goods = Statement about the nature of goods in the market</p> Signup and view all the answers

<p>Scarcity = A lack of something, in this context, resources Opportunity cost = The cost of forgoing the next best alternative when making a decision Production = The process of creating goods and services Consumption = The use of goods and services by households</p> Signup and view all the answers

<p>Finite resources and unlimited wants = Key aspect of the economic problem Economic goods = Goods that are scarce and have an opportunity cost Free goods = Goods that are abundant and have no economic cost Scarcity = The fundamental economic problem caused by the lack of resources</p> Signup and view all the answers

<p>Resources = Inputs required for the production of goods and services Scarcity = A lack of something, in this context, resources Economic goods = Goods that are scarce and have an opportunity cost Free goods = Goods that are abundant and have no economic cost</p> Signup and view all the answers