Ch.1-The basic economic problem

Question 1

Resources

Answer 1

Factors used to produce goods and services

Question 2

The economic problem

Answer 2

Unlimited wants exceeding finite resources

Question 3

Scarcity

Answer 3

A situation where there is not enough to satisfy everyone’s wants

Question 4

Economic good

Answer 4

A product which requires resources to produce it and therefore has an opportunity cost

Question 5

Free good

Answer 5

A product which doesn’t require any resources to make it and so doesn’t have an opportunity cost