The Basic Economic Problem w/s 1.

1) Consider the following scenario and fill in the boxes in the diagram below. (4 marks)

You are stranded on a desert island. What are you needs for survival? What would you want to
have with you if you could to make the stay more comfortable/endurable?

In the above scenario you have a few available ​resources ​such as wood, fish, sand, salt water.
Some of them are obviously limited in their supply and so could be considered ​scarce.​

2) In your own words define the following terms: (4 marks)

a) needs
b) wants
c) resources
d) scarcity

In the real world we have the same scenario. Billions of people have basic needs for survival,
they also have unlimited wants/desires. The planet has a limited supply of resources which
we can use to satisfy these needs and wants. We have to choose how to best use the
resources, this is the ​Basic Economic Problem.​

© ​www.i-study.co.uk​ 2016