7.1

Question 1

What is Economics?

Answer 1

A social science (study of human behaviour) that analyses the decisions made by individuals, business and governments about how limited resources are used to satisfy society’s unlimted needs and wants.

Question 2

What is a Business?

Answer 2

Any activity that is conducted by people to produce and sell goods and services that people are willing to buy, with the goal of making a profit.

Question 3

What is scarcity?

Answer 3

The economic problem of having unlimted needs and wants, but limited resources to satisfy them.