Economics: Basic Economic Problem and Sectors

Vocabulary flashcards covering the basic economic problem, scarcity, economics, and the public and private sectors based on the lecture notes.

Private sector

Economic activity of private individuals and firms, whose main aim is to earn profit for its owners.

Public sector

Economic activity directly involving the government, such as the provision of state education and healthcare services, whose main aim is to provide a service.

Basic economic problem

The problem concerned with how best to allocate scarce resources in order to satisfy people's unlimited needs and wants.

Economics

The study of how resources are allocated to satisfy the unlimited needs and wants of individuals, governments, and firms in an economy.

Scarcity

The condition caused by limited resources combined with unlimited wants, existing because there are insufficient resources to produce the products people want.

Primary reason scarcity continues

The ongoing condition that wants will continue to grow over time.