Basic Economic Problem

Question 1

What is a ‘Need’ in its basic form?

Answer 1

A need is essential to survive.

Question 2

What is a ‘Want’ in its basic form?

Answer 2

A want something we want that will enhance our lives but not necessary for survival.

Question 3

What is ‘Scarcity’?

Answer 3

Scarcity is when you have limted resources.

Question 4

Give the four ‘Factors of Production’?

Answer 4

Land, Labour, Capital and Enterprise.

Question 5

Define what is ‘Labour’?

Answer 5

Labour is when they use humans to produce a product.

Question 6

Define what is ‘Land’?

Answer 6

Land is the natural resources used to create products.

Question 7

Define what is ‘Capital’?

Answer 7

Capital is when they use man-made resources like machinery to create products.

Question 8

Define what is ‘Enterprise’?

Answer 8

Enterprise is someone or someone’s bring all of the other three Factors of Production together and create a business.

Question 9

Give an example of ‘Capital’?

Answer 9

Anything man-made.

Question 10

Give an example of ‘Land’?

Answer 10

Any natural resources.

Question 11

Give an example of ‘Labour’?

Answer 11

Any work that uses humans to create a product.

Question 12

Give an example of ‘Enterprise’?

Answer 12

Any company you can think of.

Question 13

What is ‘Oppotunity Cost’?

Answer 13

Oppotunity Cost is the Benefits forgone of the next best alternative.

Question 14

What is the ‘ Oppotunity Cost’ for an individual?

Answer 14

Anything that gives them the most utility.

Question 15

What is ‘Utility’?

Answer 15

Utility is the Economic term for satisfy.

Question 16

What is the ‘Oppotuntiy Cost’ for an Firm?

Answer 16

Anything that will maximise their profits.

Question 17

What is the ‘Oppotunity Cost’ for an government?

Answer 17

Anything that will run the country the best it can.

Question 18

What’s is ‘Choice’?

Answer 18

Is the decision between two options