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Questions and Answers
What is the fundamental economic problem?
What is the fundamental economic problem?
The fundamental economic problem is the scarcity of resources relative to unlimited wants.
What is the difference between wants and needs?
What is the difference between wants and needs?
Needs are things that are necessary for survival like food, shelter and clothing while wants are things that are desired but not necessary for survival.
Why do individuals, firms and governments have to make choices?
Why do individuals, firms and governments have to make choices?
They have to make choices due to the scarcity of resources and the need to allocate them efficiently between competing uses.
What are some examples of wants mentioned in the text and why are they sometimes called luxuries?
What are some examples of wants mentioned in the text and why are they sometimes called luxuries?
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What are some factors that influence an individual's scale of preference?
What are some factors that influence an individual's scale of preference?
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Why do scales of preference vary widely between individuals?
Why do scales of preference vary widely between individuals?
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What are some examples of how an individual's wants may change as they move from a single-person household to a family household?
What are some examples of how an individual's wants may change as they move from a single-person household to a family household?
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How do some wants develop and expand in individuals?
How do some wants develop and expand in individuals?
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Why is society still faced with the fundamental economic problem despite businesses finding new, more efficient ways to produce goods and services?
Why is society still faced with the fundamental economic problem despite businesses finding new, more efficient ways to produce goods and services?
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