1.1 (idk)

Question 1

goods

Answer 1

physical objects like break, mobile phones etc.

Question 2

services

Answer 2

are intangible, such as haircuts, gardening, repairs,

Question 3

resources

Answer 3

all the inputs used to produce goods and services.
incl machines, workers, factories etc. they are also called factors of production

Question 4

factors of production(4 categories)

Answer 4

all resources used to produce goods and services. in economics, they are grouped into 4 categories: land, labour, capital and entrepreneurship

Question 5

scarcity

Answer 5

When the available resources or factors of production are finite, while human wants and needs are infinite. There are not enough resources to produce everything that is necessary to satisfy human beings’ needs and wants.

Question 6

wants

Answer 6

Goods and services that people would like to have but are not necessary for survival, such as TVs, computers and cars.

Question 7

needs

Answer 7

Things that people must have for survival such as food, shelter and clothing.

Question 8

land

Answer 8

This includes the land itself, everything that is under and above the land and everything that is found in and under the sea. Therefore, this category encompasses all natural resources, such as minerals, oil reserves, natural gas, forests, rivers and lakes.

Question 9

labour

Answer 9

This is the human factor needed for production. It includes the physical and mental effort that people contribute to the production of goods and services. Examples include a construction worker,

Question 10

capital

Answer 10

This is the physical capital stock used to produce goods and services. It includes all manufactured (human-made) resources, such as machines, factories, roads and tools. Physical capital is also referred to as capital goods or investment goods.

Question 11

entrepreneurship

Answer 11

This is a special human skill, possessed by some people, involving the ability to develop new businesses by organising the other three factors of production – land, labour and capital – to produce goods and services, and taking the risks of success or failure of the business, as profit is not guaranteed and investment may be lost.

Question 12

opportunity cost

Answer 12

Opportunity cost refers to the second best alternative. The opportunity cost of the government paying a subsidy to a profit-making firm is all the other uses for that money, such as health care or education.
‘next best alternative that is forgone when an economic decision is made

Question 13

economic goods

Answer 13

Goods that are produced with scarce resources, and therefore have an opportunity cost and a price; for example, a computer or apples.

Question 14

free goods

Answer 14

Goods that are not produced with scarce resources, do not have an opportunity cost, and therefore do not have a price; for example, air, sunlight and rainwater.

Question 15

three basic economic questions

Answer 15

what to produce?
how to produce?
for whom to produce?

Question 16

merit goods

Answer 16

Goods that are beneficial to the individual and society as a whole, and are usually under-provided in a free market.

Question 17

necessity good

Answer 17

A good or service whose quantity demanded does not change much in response to a price change because consumers consider it essential.

Question 18

economic systems

Answer 18

Ways in which societies answer the three basic economic questions of what to produce, how to produce and for whom to produce, to allocate their scarce resources, goods and services. They are also called rationing systems.

Question 19

free market economy

Answer 19

A rationing system where all economic decisions are taken by consumers and producers through the price mechanism without government intervention, and resources are privately owned by people and firms.

Question 20

centrally planned economy

Answer 20

A rationing system where all economic decisions are taken at the centre by the government. There is no private property; all resources are owned by the state. Also called ‘command economy’.

Question 21

demerit goods

Answer 21

goods that have negative effects when consumed and cause negative externalities of consumption