Basic economic problems

Goods and services that are not necessary for survival

• Needs

• Goods

• Service

• Wants

What factors of production are required to construct a road?

• Land

• Labour

• Capital

• Enterprise

Economics Goods

• water

• plants

• sun light

• car

Free Goods

• Handphone

• House

• air

• machine

Factors can Shifting up the PPC

• Decrease in salary

• bad quality resources

• increase unemployment

• advance Technology

Factor can Shifting down PPC

• advance technology

• increasing wages

• Decreasing Employment

• high consumption rate

What is the basic economic problem?

• the value forgone from the next best alternative

• the fact that the world has finite resources but humans have infinite wants

• too many resources

• the fact that the world has infinite resources but humans have finite wants

What happens every time we make a decision?

• We win!

• We incur an opportunity cost

• We incur an opportunity loss

• We incur an opportunity cost of multiple other options

Define opportunity cost

• the value forgone from the all other alternatives

• the value forgone from the next two best alternatives

• the value forgone from the next best alternative

• the value gained from choosing

Which of the below is not scarce resource?

• Oil

• Sea water

• Natural gas

• Gold