The Basic Economic Problem Links

  • Created by: ajshala1
  • Created on: 21-09-18 16:15
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  • 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
      • 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

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