Nat 5 Economics Topic 2 - The Basic Economic Probl
Nat 5 Economics Topic 2 - The Basic Economic Probl
Exam (elaborations)
Nat 5 Economics Topic 2 - The Basic Economic Problem
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Nat 5 Economics Topic 2 - The Basic Economic Probl
Institution
Nat 5 Economics Topic 2 - The Basic Economic Probl
Nat 5 Economics Topic 2 - The Basic Economic Problem
Define The Basic Economic Problem ️️A result of scarcity - the gap between limited resources and
theoretically unlimited wants
Distinguish between needs and wants? ️️Needs are resources that are essential for survival while
wants ...
Nat 5 Economics Topic 2 - The Basic Economic Problem
Define The Basic Economic Problem ✔️✔️A result of scarcity - the gap between limited resources and
theoretically unlimited wants
Distinguish between needs and wants? ✔️✔️Needs are resources that are essential for survival while
wants are resources that are not essential for surviving but rather a luxury.
Give examples of needs and wants ✔️✔️Needs - food, clothing, shelter
Wants - entertainment
Why do Consumers, Producers, Governments have to make choices? ✔️✔️They have limited incomes/
revenue/ tax revenue
Define Opportunity cost
Give a model answer ✔️✔️The sacrifice of the next best alternative forgone.
The opportunity cost of having x is NOT HAVING/ MAKING y
What is Land (give examples) ✔️✔️This is the natural resources on offer including what is on it and the
sea. (Woodlands, Minerals, oil)
What is Labour (give examples) ✔️✔️This is the human effort in the production of goods and services.
(factory worker, teachers)
What is Capital (give examples) ✔️✔️These are the man-made resources used to produce goods or
services. (vehicles, factories, roads)
What is Enterprise (give examples) ✔️✔️The idea - the combination of the other factors of production
to produce goods and services. (Mark zuckerburg0
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