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    Chapter 1 - Economic Problem

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    Shayna Butt
    The document discusses the nature of the economic problem. It notes that resources are finite but wants are unlimited, leading to scarcity. This is the economic problem, as finite resources cannot satisfy all wants. Resources used to produce goods and services are factors of production, while goods requiring resources and having an opportunity cost are considered economic goods. In contrast, goods not requiring resources and lacking an opportunity cost are free goods, though these are rare.

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    Chapter 1 - Economic Problem

    Uploaded by

    Shayna Butt
    12 views1 page
    The document discusses the nature of the economic problem. It notes that resources are finite but wants are unlimited, leading to scarcity. This is the economic problem, as finite resources cannot satisfy all wants. Resources used to produce goods and services are factors of production, while goods requiring resources and having an opportunity cost are considered economic goods. In contrast, goods not requiring resources and lacking an opportunity cost are free goods, though these are rare.

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    The document discusses the nature of the economic problem. It notes that resources are finite but wants are unlimited, leading to scarcity. This is the economic problem, as finite resources cannot satisfy all wants. Resources used to produce goods and services are factors of production, while goods requiring resources and having an opportunity cost are considered economic goods. In contrast, goods not requiring resources and lacking an opportunity cost are free goods, though these are rare.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    12 views1 page

    Chapter 1 - Economic Problem

    Uploaded by

    Shayna Butt
    The document discusses the nature of the economic problem. It notes that resources are finite but wants are unlimited, leading to scarcity. This is the economic problem, as finite resources cannot satisfy all wants. Resources used to produce goods and services are factors of production, while goods requiring resources and having an opportunity cost are considered economic goods. In contrast, goods not requiring resources and lacking an opportunity cost are free goods, though these are rare.

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    Chapter 1 — The Nature of the Economic Problem.

    1. Finite Resources.

    - resources = factors used to produce goods and services


    - wants = desires for goods and services
    - scarcity = a situation where there isn’t enough to satisfy everyone’s wants
    - needs = goods and services vital for survival
    - economic problem = unlimited wants exceeding finite resources, leading to scarcity and
    mute choices
    - growth in wants = exceeding the growth of economic resources.

    2. Economic Goods and Free Goods.

    - economic good = product which requires resources to produce it and has an opportunity
    cost
    - free good = product which does not require any resources to make it and doesn’t have
    an opportunity cost
    - water from a river, sunshine = free goods, rare
    - cars, education, bottled water = economic goods.

    shayna butt 1 2022-2023

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