Chap 31

Question 1

Explain what is economics

Answer 1

Study of how people with limited resources make choices in order to satisfy their needs and wants

Question 2

Explain economic resources

Answer 2

factors used to produce and distribute goods, service and wealth

Question 3

Explain scarce

Answer 3

limited in supply

Question 4

explain need

Answer 4

Something that is essential for us to live

Question 5

Explain want

Answer 5

Something that can satisfy you

Question 6

Explain financial cost

Answer 6

Price of the item we choose to buy

Question 7

Explain opportunity cost

Answer 7

The other things we could have spent our money on

Question 8

Explain rational choice

Answer 8

One where the expected gains outweigh the expected losses

Question 9

Explain utility

Answer 9

when choosing between 2, we will choose the one that will provide us with the greatest benefit

Question 10

Explain factors of production

Answer 10

Economic resources needed to produce goods and services

Question 11

List the 4 factors of production

Answer 11

Land, labour. capital and enterprise

Question 12

Reward for the four factors of production

Answer 12

Rent- land, wage - labour, interest - capital, profit - enterprise

Question 13

Explain supply

Answer 13

Quantity of a resource that is available at a given time or price