1.1 Basic Economic Problem

Question 1

Economic Problem

Answer 1

Unlimited wants, limited resources

Question 1

Consumers

Answer 1

Person/Group that directly uses a good or service

Question 2

Producers

Answer 2

Person/Group that makes a good or service

Question 3

Market Economy

Answer 3

Market decides which goods + services to produce

Question 4

Centrally Planned Economy

Answer 4

Government decided which goods and services to produce

Question 5

Mixed Economy

Answer 5

Markets decide which goods and services to produce with some government intervention

Question 6

Good

Answer 6

Tangible product

Question 7

Service

Answer 7

Intangible Product

Question 8

Land

Answer 8

Natural Factors of production

Question 9

Labour

Answer 9

Workforce of production, both physical and mental

Question 10

Capital

Answer 10

Good or Service that was produced first that helps in the production of a product

Question 11

Enterprise

Answer 11

Factor of production that organises the other factors and usually bears the financial risk

Question 12

Opportunity Cost

Answer 12

Next best alternative given up when making a choice