Summary Economics - The basic economic problem

fundamental finite resources unlimited wants
economic problem : t




resources :
inputs required for the production of goods d services


scarcity :
lack of something C resources )



be produced with cost I consumed
economic goods : scarce in supply d can only an economic with a
price
:
good with an opportunity cost


free goods : abundant in supply -

usually natural sources e. g .
air t
sunlight




land labour




•
all natural resources in an economy
.
all human resources available in an economy
e. g .
lakes forests , climate ,
surface of earth .
mental & physical efforts & skills of workers 1 labourers
,




quality :
depends on soil type , fertility t weather
quality :
depends on skills ,
education a qualification

etc .




geographically immobile -
cannot move land geographically ( im ) mobile -

depend on transport facilities ,
J
occupationally mobile can use for many activities
housing family regulations d costs
-

,
,



occupationally ( im ) mobile -
depend on skills d qualifications




capital enterprise



•
made resources available in an the ability take risks to carry out idea
man economy to an
.
-




spade car entrepreneurs
.
e. g .
,




quality :
depends on quality of material & how its quality : depends on how it can satisfy demand in



produced -
tech or labour cost - effective & innovative ways



mobility depends e g office is
geo but not Occ both geographically 1-
occupationally mobile
-
-
.

,
b
is occ
on nature & use pen geo +