CPE Central Problem Of Economics

Question 1

Factors of production

Answer 1

Capital, entrepreneurship, land, labour

Question 2

Scarcity

Answer 2

Problem that arises because limited resources cannot fully satisfy unlimited human wants

Question 3

Opportunity cost

Answer 3

Net benefit forgone from the next best alternative when a choice is made

Question 4

Causes of shift in ppc

Answer 4

Quantity, quality, technology

Question 5

Economic growth

Answer 5

Increase in real output of an economy over a period of time

Question 6

Actual economic growth

Answer 6

Percentage of annual increase in national output

Question 7

Potential economic growth

Answer 7

Percentage annual increase in economy’s capacity to produce

Question 8

Standard of living

Answer 8

Well-being of an average person in a country

Question 9

MB

Answer 9

of an activity is the increase in total benefit resulting from carrying out one additional unit of the activity

Question 10

MC

Answer 10

Of an activity is the increase in the total costs resulting from carrying out one additional unit of the activity