Economics 1.0

Question 1

Economics

Answer 1

Economics is the study of how to make the best possible use of scarce or limited resources to satisfy unlimited human needs/wants

Question 2

Social sciences

Answer 2

Academic studies of human societies and how people in society interact with each other
Academic disciplines that study human society and social relationships
They are concerned with discovering general principles describing how societies function and are organised

Question 3

Microeconomics

Answer 3

The study of how individual decision making units, like consumers and firms make choices, on market prices, Quantity of goods and FOPs

Question 4

macroecnomics

Answer 4

it is the study of economics with the use of aggregates and wholes in order to obtain an overall picture of how an economy works

Question 5

Scarcity

Answer 5

scarcity refers to the limited availability of economic resources relative to society’s infinite needs and wants

Question 6

efficiency

Answer 6

refers to making the best possible use of existing scarce resources. could refer to producing at lowest cost possible, or allocative efficiency, where MSC = MSB, and social surplus is maximum

Question 7

equity

Answer 7

concept of idea or fairness. Used mostly in connection with equality in the distribution of income, wealth, human opportunity

Question 8

economic wellbeing

Answer 8

a multidimensional concept which relates to the level of prosperity and living standards in a country, as well as economic satisfaction

Question 9

sustainability

Answer 9

refers to conserving/protecting the environment so that it can continue to satisfy needs/wants in the future. Refers to the long-term maintenance or viability of any particular activity or policy. The ability of the present generation to satisfy its needs by the use of resources, and especially non-renewable resources, without limiting future generations’ ability to satisfy their wants and needs

Question 10

FOP

Answer 10

Resources / inputs used in the production process. It includes land, labour, enterprise and capital. They are scarce

Question 11

Land

Answer 11

Includes all natural resources, including all agricultural and non-agricultural land, as well as everything that is under or above the land, such as minerals, oil reserves, underground water, forests, rivers and lakes. Natural resources are also called ‘gifts of nature’.

Question 12

labour

Answer 12

refers to the mental and physical contribution of workers in the production process

Question 13

capital

Answer 13

physical capital refers to means of production that involves machinery, tools and factories. it can also include infrastructure of a country. Human capital refers to the skills, education possessed by the labour force of a country. all come with a stream of future benefits

Question 14

enterprise

Answer 14

refers to the ability of an individual to manage the other FOPs and their willingness to take + bear risks, as well as make business decisions