economics

Question 1

what is economics

Answer 1

Economics is the study of decisions and outcomes that occur as a result of relative scarcity. economics is all about the choices society makes to satisfy unlimited wants with limited resources.

Question 2

What is the economic problem

Answer 2

The main economic problem is relative scarcity. this describes the issue that people have unlimited needs and wants but there is only limited resources on earth.

Question 3

opportunity cost

Answer 3

because there is only limited resources on each people must make choices as to how they should be utilised. when people make these decisions one option must be given up, this is known as the opportunity cost.

Question 4

opportunity cost example

Answer 4

i know

Question 5

needs and wants difference

Answer 5

the difference between needs and wants are why people buy them and what people use them for. Needs are things all humans need to survive such as water, food, shelter and health care. whereas wants are goods and services that help humans live a more comfortable life such as a tv and a pool.

Question 6

land resources

Answer 6

land resources are raw materials we get from the earth that cannot be man made.

Question 7

labour resources

Answer 7

labour resources are physical and mental human work and effort to produce goods and services.

Question 8

capital resources

Answer 8

capital resources are the equipment such as machines and buildings that are used by humans in the process of production.

Question 9

enterprise resources

Answer 9

enterprise resources are the skills used by people when they use their initiative, drive and personal goals to maintain a business.

Question 10

demand factor

Answer 10

a demand factor that may influence demand other that the price may be taste of preference.

Question 11

supply factor

Answer 11

a supply factor that may influence the supply of a good other than price may be availability of the resource.

Question 12

law of demand

Answer 12

The law of demand demonstrates the relationship between price movement and demand for a product. As price increases demand will decrease whereas when the price decreases demand will increase.

Question 13

law of supply

Answer 13

The law of supply demonstrates the relationship between price movements and the quantity of a product supplied. As price increase supply will increase because this will lead to an increase in profit.

Question 14

price mechanism

Answer 14

the system that determines the willingness of producers to supply, and consumers to demand interaction in a market place to set the prices for goods and services.

Question 15

market

Answer 15

situation where there are potential buyers in contact with potential sellers and there is a means of exchange