1A : management of resources

Question 1

what are the two types of economics ?

Answer 1

• microeconomics : deals with individuals units or groups
• macroeconomics : deals with nation or economy as a whole

Question 2

when deciding on allocation of resources what are the 3 major problems/questions ?

Answer 2

• what to produce : cars, food, hospital
• how to produce : techniques used, least costs method of method
• whom to produce : will every one gat an equal share of what is produced , would the income be distributed equally

Question 3

define consumption and production

Answer 3

• production : creating goods and services
• consumption : using the goods and services to satisfy want

Question 4

what are the types of goods ?

Answer 4

• economics goods : made by using resources/ FOP e.g. they have a price
• free goods : FOP not needed e.g. air water

Question 5

what are the enhancement of production ?

Answer 5

• specialization
• exchange (trade)
• division of labour

Question 6

what is specialization ?

Answer 6

firms or countries produce some goods and services they are best at producing

Question 7

what is exchange (trade) ?

Answer 7

exchange of goods and services helps to resolve the problem of scarcity to a extent

Question 8

what is division of labor ?

Answer 8

The division of labor is splitting tasks among individuals or groups to increase efficiency.

Question 9

define opportunity cost ?

Answer 9

the highest-valued option forgone

Question 10

explain what a production possibility curve is

Answer 10

the production possibility curve (PPC) is a graph that shows the most of two goods that can be made with limited resources. It helps to see trade-offs and choices in production