Economics

Question 1

what are the 4 factors of production

Answer 1

Land, Labour, capital and enterprise

Question 2

what is meant by the term scarcity?

Answer 2

Having unlimited wants as an economy but having limited resources to fulfil the wants.

Question 3

Who are Economic agents

Answer 3

Government - a government sets the rules that other participants in the economy have to follow

producers - people that make the goods/services

consumers - people or firms who buy the goods or services

Question 4

what is a good and service?

Answer 4

A good is a tangible, physical product, books, ps5

a service is an intangible product - teaching, medical checkups

Question 5

what is the basic economic problem

Answer 5

having unlimited wants but finite resources

Question 6

what Graph can be used to display opportunity costs

Answer 6

PPF graph

Question 7

what is an opportunity cost?

Answer 7

the benefits you lose from the next best alternative after making a choice

Question 8

what is the fiscal policy?

Answer 8

this is a policy that involves Gov spending and taxation. It can be used to influence the economy, firms or people. it can even be used to stimulate AD

Question 9

what is AD

Answer 9

AD is aggregate demand and the components are -
consumption (c) + investment (I) + Gov spending (G) + (Exports - imports)

Question 10

Aggregate supply

Answer 10

the total amount of goods/ services supplied in the economy