The Basic Economic Problem: Infinite wants and Finite resources. There's only a limited amount of resources available to satisfy our wants and these need to be allocated.
Scarcity:The world's resources are finite, there is only a limited amount of land, oil, water, food ect on the planet. These resources (that are scarce) are referred to as 'ECONOMIC GOODS'
Free Goods:Resources which do not suffer from scarcity i.e. air
Human Needs:Goods that are required to survive i.e. shelter, food, liquid, clothing - Human Needs are finite.
Human Wants:Extra goods that are not required to survive but will increase the standard of living i.e. iPods and Jewellery - People will always want to better their standard of living, which is why human wants are infinite.