Economics C1 & C2- The Economic Problem & Factors of Production

Front

Scarcity

Back

It is a situation where there are not enough resources to satisfy everybody’s wants.

Front

Nature of the Economic problem

Back

It is when unlimited wants exceeds limited resources which leads to the problem of choice which results in opportunity cost. There are 3 questions which every society has to answer: What to produce? ,how to produce? For whom to produce?

Front

economic goods

Back

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

Front

Free goods

Back

A product which does not require any resources to make it and so does not have an opportunity cost

Front

Consumer goods

Back

Consumer goods are those goods which are directly used for final consumption.

Front

Capital goods

Back

Capital goods are those goods which are required to produce other goods.

Front

Merit Goods

Back

Goods that do not affect the third party negatively and have positive externalities

Front

Demerit goods

Back

Goods that affect the third party negatively and have negative externalities

Front

capital

Back

Man made goods made for the further production of other goods

Front

Which one of the following is a capital: Road, Water, Fish, Rocks?

Back

Road