Economics

Question 1

Name the main resources

Answer 1

1️⃣Land= natural resources that come from the world( water, coal, oil)
2️⃣Labour= this is the employed workforce
3️⃣Capital= man-made resources are needed to make the product( cars, lorries, machines)
4️⃣Enterprise= the combination of entrepreneurial production

Question 2

What is a resource?

Answer 2

A resource is something that is used to make goods and provide services.

Question 3

What is opportunity cost?

Answer 3

It is the real cost of choosing one thing and not the other.

It is the benefit you lose as a result of making a choice.

Question 4

What is the purpose of economics?

Answer 4

The purpose of economics is to best use the scarce resources to satisfy as many wants as possible and to increase people’s choices and make them better off

Question 5

What is fixed cost, variable cost and total cost?

Answer 5

🔸Costs that are regardless the amount of output
🔹costs which vary directly with output
🔻the sum of variable cost and fixed cost

Question 6

What are the costs of production?

Answer 6

The costs of production are the payments to those who have provided the resources (rent, wages, interest to a bank and profit to the entrepreneur)