1.1.1 The Economic Problem

Question 1

Define the meaning of ‘goods’

Answer 1

Goods are actual tangible products, meaning you can hold them in your hand.
They are produced and consumed

Question 2

What are services

Answer 2

Services are activities or experiences
They are intangible
They are provided by businesses or other people

Question 3

What is a want

Answer 3

any good or services that are not necessary but are desired. Example could be designer clothes

Question 4

What is a need

Answer 4

Any good or services that we require for our survival. Example food, water and shelter

Question 5

What are the 4 factors of production

Answer 5

Land – natural resources ranging from actual land space to air, minerals, lakes, climate. ​

Labour – Human resources or a nations population.​

Capital – any man-made item to help production e.g. machines and offices. ​

Entrepreneur – This is organizing the land, labour, capital and taking the risk.​

Question 6

What is opportunity costs

Answer 6

The cost of any possible alternative when making a choice

Question 7

What is a PPC (Production Possibility curve)

Answer 7

A production possibility curve (PPC) shows the maximum combinations of two goods that an economy can produce in a given period of time with all its resources fully and efficiently employed

Question 8

What is economic growth?

Answer 8

Economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period to another​

Question 9

finite

Answer 9

When there is a limit or end

Question 10

scarcity

Answer 10

State of short supply