Economic Basic Concepts

Question 1

Define Economics (gr10)

Answer 1

Social Science that studies how society behaves in meeting their unlimited needs and wants faced with limited resources

Question 2

What is Micro Economics

Answer 2

Study of the behaviour of individual participants in the economy. Includes how prices are determined

Question 3

What is Macro Economics

Answer 3

Study of the sum of economic activity inside of regional, national and international study fields

Question 4

What is Equitability

Answer 4

Being just and fair in the allocation and use of economic resources

Question 5

What is Opportunity Cost

Answer 5

Value of the next best alternative given up

Question 6

What is Ceteris paribus

Answer 6

All other things being equal (used to explain economic models)

Question 7

What is a Normative Statement

Answer 7

An economic statement that is based on individual opinion

Question 8

What is a Positive Statement

Answer 8

An economic statement that is objective and can be tested against certain facts

Question 9

What is Scarcity

Answer 9

A condition in which we have limited resources faced with unlimited needs and wants

Question 10

What is Absolute Scarcity

Answer 10

When is totally no economic resource to meet prevailing needs and wants

Question 11

What is Relative Scarcity

Answer 11

When the available resource has more than one use at the same time or you do not have the ability to get the resource

Question 12

What is Price theory

Answer 12

Looks on how prices can be formed by means of market forces

Question 13

What is Efficiency

Answer 13

Where economic resource is best allocated and put to their productive use

Question 14

What are the 6 branches of Economics

Answer 14

Monetary Economics
Public Sector Economics
Developmental Economics
Labour Economics
Environmental Economics
International Economics

Question 15

What issues does Macro-Economics deal with

Answer 15

Unemployment
Inflation
Growth
Monetary and Fiscal Policy