The Basic Economic Problem Links
- Created by: ajshala1
- Created on: 21-09-18 16:15
View mindmap
- The Basic Economic Problem
- This is where wants are unlimited but resources are finite.
- As a result, choices have to be made
- When making a choice, the next best alternative foregone is the opportunity cost.
- OPPORTUNITY COST
- When making a choice, the next best alternative foregone is the opportunity cost.
- As a result, we have to decide how to optimally allocate resources.
- Allocation of Resources
- Due to the fact that wants are unlimited which need to be met, natural resources are used.
- Transporting, the use of fossil fuels the production leads to pollution which is a negative externality.
- Externalities
- Transporting, the use of fossil fuels the production leads to pollution which is a negative externality.
- As a result, choices have to be made
- This is where wants are unlimited but resources are finite.
Similar Economics resources:
Teacher recommended
Comments
No comments have yet been made