1.1.1 Economic problem

Question 1

Need

Answer 1

A good or service that we require or that is necessary for our survival

Question 2

Want

Answer 2

A good or service that is desired but not needed

Question 3

Opportunity cost

Answer 3

The cost of any possible alternative when making a choice

Question 4

PPC

Answer 4

the limits of production given finite resources, helping to visualize trade-offs and efficiency in an economy.

Question 5

PPC

Answer 5

A simple representation of the maximum level of output that an economy can achieve when using existing resources in full

Question 6

Demand

Answer 6

the amount of a good that consumers are willing and able to buy at a given price

Question 7

Economic problem

Answer 7

There are unlimited wants, but limited resources

Question 8

Scarcity

Answer 8

Limited amounts. of resources

Question 9

Profit

Answer 9

money left over once all cost have been paid

Question 10

Rational

Question 11

Irrational

Answer 11

Not based on clear thought of proof

Question 12

Revenue

Answer 12

money made from sales

Question 13

maximise

Answer 13

to increase something such as profit as much as possible

Question 14

PPC graph

Answer 14

Production possibilities curve

Question 15

Economic growth

Answer 15

An increase in an economy’s ability to produce goods and services over time