The nature of economic problem

Why will scarcity continue to be a problem in the future?

• World population will fall

• Wants will continue to increase

• Price will rise

• The quantity of resources will decline

Which of the following is a free good?

• Wind coming from the sea

• Inoculation provided without charge by the state

• Recycled paper

• Products given away by a supermarket to attract customers

These are called factors used to produce goods and services

Unlimited wants exceeding finite resources

A situation where there is not enough resources to satisfy everyone's wants.

A product which requires resources to produce it and therefore has an opportunity cost

It exist without the use of resources

Desire for goods and services

Which of the following is an economic good

• Air

• Newspapers

• Sunlight

• Water

These are things that are essential for people to live adequately.