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The basic economic problem (Evaluating costs and benefits of economic…
The basic economic problem
What are scarce resource and unlimited wants
Scarce resource- this is when there is an insufficient amount of something to satisfy the all wants
Example of scarce resource and unlimited wants is that there is limited amount of oil available and there is unlimited amount of competition for oil
Example of scarce resource and unlimited wants is that there is limited amount land but there is lots of alternative of its uses
Unlimited wants- the infinite desire of something whether or not they have the resource to purchase it
Another example is limited amount of doctor and unlimited wants of their service by the customer
Insufficient housing and unlimited amount wants by the growing population
Want is what consumer would like to have but is not essential for survival whereas needs is what is essential for survival
What is economic problem and how should resources be allocated
Economic problem- how to use the limited resources to satisfy unlimited wants
What is opportunity cost
opportunity cost
- the next best alternative given up when deciding a choice
an example of opportunity would be when you have 50p and you spend it on twix or twirl and you choose twix . The opportunity cost would be twirl
Evaluating costs and benefits of economic choices
economic sustainability
the best use of resources in order to create responsible development or growth now and into the future
social sustain ability
the impact of development or growths that promotes an improvements in quality of life for all , now and into the future
environmental sustainability
the imact of development or growth where the effect on environment is as little as possible and easy to manage, now and into the future
renewable vs non renewable
renewable resources are resources that can be used again and again