Economics

Question 1

What is economics

Answer 1

Economics is the study of how scarce resources (land, labour, capital, enterprise) are allocated to fulfil the unlimited wants of consumers or any entity.

Question 2

Example of economics

Answer 2

When optus stadium was built

Question 3

Two branches of economics

Answer 3

Microeconomics and macroeconomics

Question 4

What is microeconomics

Answer 4

Looks at the factors that influence the various parts that make up the Australian economy as a whole - production costs, labour costs, a specific market or sector

Question 5

What is macroeconomics

Answer 5

• Looks at the economy as a whole and the larger flows affecting the overall economic condition
• E.g. inflation, unemployment, national spending etc.

Question 6

What is the basic economic problem

Answer 6

We have unlimited wants and scarce resources to satisfy our needs and wants.

Question 7

4 Economic questions

Answer 7

○ What to produce?
○ How to produce it?
○ How much to produce?
○ For whom to produce?

Question 8

Relative Scarcity

Answer 8

• Human wants are unlimited and cannot be fully satisfied because the resources are limited
• Therefore, resources are scarce relative to the demand for goods and services