economics 2

Question 1

basic economic problem

Answer 1

how to best use limited resources to satisfy the unlimited wants of people

Question 2

unlimited wants

Answer 2

the infinite desire for something

Question 3

scarce resources

Answer 3

when there is an insufficient amount of something to satisfy all wants

Question 4

what are the three questions to reduce an economic problem

Answer 4

1. how should goods and services be produces? for instance firms should use more technology
2. what should be produced? for example should resources be used to make fizzy drinks, machines or hospitals.
3. for whom should the goods and services be produced? for instance should consumers only have goods they can afford buy or are there good from the government that should be provided for everyone

Question 5

opportunity cost

Answer 5

the next best alternative given up when making a choice

Question 6

role of opportunity cost

Answer 6

covers the missed benefits that the other options may have been given to consumers. it can be used to compare what could have been gained from uses of resources and can help decide which goods and services should be produced

Question 7

economic choice

Answer 7

an option for the use of selected scarce resources

Question 8

economic sustainability

Answer 8

the best use of resources in order to create responsible development or growth now and into the future

Question 9

social sustainability

Answer 9

the impact of development or growth that promotes an improvement of quality of life for all now and into the future

Question 10

environmental sustainability

Answer 10

the impact or development or growth where the effect on the environment is small and possible to manage now and into the future.

Question 11

what does it mean when costs of a good is greater than its benefits

Answer 11

a poor use of an economy resource and reduces production

Question 12

what does it mean when benefits of a good are greater than its costs

Answer 12

more should be made so that society can benefit

Question 13

what does sustainability cause

Answer 13

costs and benefits of an economic choices now and into the future
prioritise the use of scarce resources and help improve quality of life without reducing future generations

Question 14

role of economic sustainability

Answer 14

growth/development for economies to enable firms to stay in business in the future.
can take into account of all the economic costs and benefits of a good now and into the future.

Question 15

examples of economic costs

Answer 15

cost of production, the price that consumers pay, reduced costs such as unemployment

Question 16

role of social sustainability

Answer 16

growth and development should meet the basic needs of all now and into the future
encourages fairness and quality of life for others such as services for elderly or transport provision
happier society leads to a more productive economy over time

Question 17

role of environmental sustainability

Answer 17

the environment should be protected so that the earth can support humans and trade now and into the future
choices may be prioritised to minimise harm on the environment over time.