Understanding Business Activity

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What is a need?
A good or service essential for living
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What is a want?
A good or service which people would like to have but which is not essential for living
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What is meant by the Economic Problem?
There exists unlimited wants but limited resources to produce the goods and services to satisfy those wants. This creates scarcity.
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What is meant by scarcity?
Is the lack of sufficient products to fulfil the total wants of the population.
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What is Opportunity cost?
Is the next best alternative given up by choosing another item
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Other cards in this set

Card 2

Front

What is a want?

Back

A good or service which people would like to have but which is not essential for living

Card 3

Front

What is meant by the Economic Problem?

Back

Preview of the front of card 3

Card 4

Front

What is meant by scarcity?

Back

Preview of the front of card 4

Card 5

Front

What is Opportunity cost?

Back

Preview of the front of card 5

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