The Basic

1. ECON1
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The Basic Economic Problem
Answer all the questions below
1. Define Scarcity
2. Explain the difference between needs and wants
3. Explain using an example the concept of Opportunity Cost
4. Using the products Guns and Butter draw a Production Possibility Frontier
and briefly explain what is meant by it
5. Explain the difference between Economic Goods and Free Goods and give an
example of each