economic problem
- Created by: YesayaMishael
- Created on: 12-05-17 03:48
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- 1.1 The Basic Economic Problem
- What is the economic problem?
- Scarcity
- Limited amount of resources to satisfy unlimited wants and needs
- Scarcity
- Opportunity Cost
- The cost of choosing between alternative uses of resources
- Factors of Production
- Land
- natural resources
- Labour
- People who work to produce goods and services
- Capital
- Man-made resources that are used to produce goods and services (machinery)
- Enterprise
- The skills and willingness to take risks required to organize productive activities
- Land
- Production Possibility Curve (PPC)
- Opportunity cost can be shown using a PPC
- It shows the maximum combinations of goods and services that can be produced by an economy in a period of time
- What is the economic problem?
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