Unlimited consumer wants are greater than the quantity of FOP available to produce goods and services goods + services are scarce consumers cannot satisfy all their wants? have to make a choice ? any choice involves an opportunity cost
The
economic problem therefore refers to the scarcity of the commodities
due to the scarcity of resources available to produce the unlimited
amount of goods and services we NEED or WANT.
The economic problem is a problem of scarcity of the available resources essential for the satisfaction of human wants.
Income: money that you receive regularly. Don't only earn it, can win or invest it. A flow of money
Wealth: what you already have. Not only money, also house, car, jewellery? everything you own and that is worth something.
Social wealth: wealth that belongs to the society e.g. libraries
National wealth: wealth that belongs to a whole city/community: personal or social.