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Chapter 1 Basic Economic Problem

The document discusses the nature of economic problems and scarcity. It notes that resources are limited and not enough to satisfy all wants. It provides examples of needs, wants, economic goods that require resources to produce, and free goods that do not require resources. Scarcity means there is not enough to fulfill everyone's wants and it creates three basic economic questions around what, how, and for whom to produce with limited resources.

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Dhrisha Gada
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27 views

Chapter 1 Basic Economic Problem

The document discusses the nature of economic problems and scarcity. It notes that resources are limited and not enough to satisfy all wants. It provides examples of needs, wants, economic goods that require resources to produce, and free goods that do not require resources. Scarcity means there is not enough to fulfill everyone's wants and it creates three basic economic questions around what, how, and for whom to produce with limited resources.

Uploaded by

Dhrisha Gada
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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The nature of the Economic

problem
• Do you have everything you would like to have?

• There are many people who do not have sufficient food & shelter

• There is a shortage of covid vaccines for the people


• Resources- factors used to produce goods and services
• There is a not enough resources to produce all the goods and services
that people want- Scarcity
• Scarcity is a situation where there is not enough to satisfy everyone’s
wants
Examples of Scarcity
Needs
Needs are the things essential for survival. For example, food, clothing, water, shelter and
air.
Wants
• Wants are goods and services not required for survival.
• Wants are infinite- there is no limit to people’s wants.
• Wants continue to grow and change
The 3 Basic Economic questions
Economic Goods
• A product that requires resources to produce it and thus has
an opportunity cost. Eg. Education, cars, clothes.
Free goods
A product which does not require resources to make it and so does not
have an opportunity cost. Eg sunshine, water in a river

Sunshine River
Needs or Wants?
Economic goods or Free goods?

Mobile Water in a river


Wind Energy

Table
Economic goods or Free goods?

Solar Energy
Air

Sunshine

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