Economics AS unit 1 Revision 0.0 / 5 ? EconomicsCompetitive marketsASEdexcel Created by: Taz MohamedCreated on: 23-02-16 23:56 scarcity/opportunity cost scarcity is the basic economic problem scarcity is the result of insufficient resources required to provide for everyone scarcity exists because human wants = infinite , whereas resources required to meet those wants = finite Scarcity occur in all sorts of economies , but it is more obvious in countries that face : famine/drought and insufficient food/water it can also occur in wealthy($$$) countries as not all human material wants can be "satisfied" scarcity will mean we have to make important decisons and this situation cosnumers , producers , goverment : all face scarcity once we make the decision - "oppurtunity cost" arises oppurtunity cost = "value of the next best alternative forgone" cosnumers , producers , goverment : all face oppurtunity cost 1 of 2 Renewable and Non- Renewable resource Renewable resource : is one whose stock level can be maintained over a period of time Examples of renewable resources : soalr energy , windpower , water , oxygen , timber , soil Renewable resource may decline if it is cosumed at a faster rate than the enviroment can replenish (Restore) them In order to avoid things such as "deforestation" and "soil erosion" - caful management is required ....................................................................................................................................... Non-Renewable resources :is one whose stock level decreases over a period of time as it is consumed Examples of Non-renewable resources : fossil fuels such as (coal,oil and gas ) + commodities such as steel , copper , aluminium The rate of decline of non-renewable resources can be reduced through : 2 of 2
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