Macroeconomics

Annotations:

• lack of resources available 

1. A
   1. Absolute scarcity (factors of production)
      1. Human resources (labour)
      2. Natural resources (land)
      3. Human-0made resources (capital)
      4. Entrepreneurial talents (entrepreneurship)
   2. Relative scarcity
   3. Scarcity and poverty
2. B
   1. Economic goods

      Annotations:

      • are scarce, they have utility (satisfy wants) and value (can be brought and sold) they are part of someones wealth, they belong to someone.
   2. Free goods

      Annotations:

      • are so plentiful nobody would pay for them, although they have utility they have no commercial value i.e. air and water. (don't belong to anyone)
3. C
   1. Alternatives
   2. Choices
   3. Decisions
      1. Customs
      2. The state
      3. The market
4. D
   1. Opportunity cost

      Annotations:

      • the value of the next best alternative that has been given up.