Define the term scarcity.
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Define the term scarcity.
Scarcity is the situation where resources are finite in relation to unlimited human wants and needs.
What are factors of production?
Factors of production are the scarce resources (land, labour, capital, enterprise) used in the production of goods and services.
Define the term needs.
Needs are essential requirements for human life, such as shelter, food, and clothing.
What does the term wants mean?
Wants are non-essential desires, such as better housing or a yacht.
Define the term economic goods.
Economic goods are products that are scarce in relation to demand, making them valuable and subject to the price mechanism.
True or False?
Free goods are abundant in supply.
True.
Free goods are abundant in supply.
How is the term resource allocation defined?
Resource allocation is the decision-making process of assigning scarce resources to their most efficient use.
What is opportunity cost?
Opportunity cost is the next best alternative given up when a choice is made.
State the meaning of the term consumers.
Consumers are individuals or households that use or consume goods and services.
Define the term producers.
Producers are businesses or individuals who create or supply goods and services.