1.1 Scarcity

Which of the following is the most fundamental issue that economics addresses?

• Choice of appropriate technology

• Reduction of unemployment

• Reduction of budget deficit

• Promotion of privatization

• Use of scarce resources

a situation in which there are not enough resources to satisfy human wants

• scarcity

• goods

• services

• consumer

desires that can be satisfied by consuming a good or a service

• wants

• needs

• scarcity

• economics

things that are necessary for survival

• wants

• needs

• scarcity

• economics

the study of how individuals and societies satisfy their unlimited wants with limited resources

• wants

• needs

• scarcity

• economics

all of the human effort used to produce goods and services

• factors of production

• land

• labor

• capital

all of the resources made and used by people to produce other goods and services

• factors of production

• land

• labor

• capital

The study of resources such as money, materials, and labor

• economics
• services
• producers
• goods

The definition of Scarcity is...

• An unlimited amount of resources to meet limited wants and needs
• A limited amount of resources to meet unlimited wants and needs.
• When people use time and energy to create events
• a city where individuals commit themselves to unlimited wants and needs

Which of the following is one of the basic economic questions?

• What should we produce?

• How should things be produced?

• Who should things be produced for?

• All of the above?