The economic problem

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  • Created by: izzy
  • Created on: 09-06-13 13:03
  • The economic problem is limited resources in relation to people's desires and wants.
  • The economic problem results from scarcity.
  • Scarcity results in the need for choice.
  • Whenever a choice has to be made there is an opportunity cost.
  • The opportunity cost of any decision is the next best alternative foregone.
  • Economist generally assume that people are rational, choosing the best alternative available.
  • Scarcity, opportunity cost and choice can be

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