SCARCITY: The fundamental economic problem. Wants are unlimited Resources are limited. FACTORS OF PRODUCTION. Land : All natural resources Labour : Human effort Capital : output of economic activity used in production of more output.
PowerPoint Slideshow about 'SCARCITY: The fundamental economic problem' - eamon
An Image/Link below is provided (as is) to download presentation
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
When we cannot produce more of any one good without giving up some other good that we value more highly, we have achieved allocative efficiency, and we are producing at the point on the PPF that we prefer above all other points.