1: The Nature of the Economic Problem

Question 1

Economics

Answer 1

A social science that describes the factors that determine the production, distribution and consumption of goods and services

Question 2

Social science

Answer 2

the study of people as individuals, communities and societies, their behaviours and interactions with each other, built technologies and natural environments

Question 3

Production

Answer 3

the process of manufacturing goods from raw materials or components to make an output fit for consumption

Question 4

Resources

Answer 4

inputs required for production of goods and services

Question 5

Scarcity

Answer 5

a lack of resources

Question 6

What is the economic problem

Answer 6

There are limited resources to satisfy all human wants and needs

Question 7

Economic goods

Answer 7

Goods that are scarce in supply(limited), and can only be produced with and/or consumed with a price (bought goods)

Question 8

Free good

Answer 8

Goods abundant in supply, usually referring to natural resources

Question 9

Opportunity cost

Answer 9

the potential benefits that a consumer misses out on when choosing one option over another

Cost -> how much you are going to have to sacrifice for that option