Economics Knowledge Qs

Question 1

economics

Answer 1

the study of resource allocation

Question 2

what is the basic economic problem

Answer 2

the scarcity of resources in relation to the unlimited wants and needs of individuals and societies

Question 3

laws of supply and demand

Answer 3

When demand exceeds supply, prices tend to rise, and when supply exceeds demand, prices tend to fall. In a competitive market, prices adjust to bring supply and demand into equilibrium.

Question 4

equilibrium

Answer 4

refers to the state of balance where the quantity demanded for a good or service equals the quantity supplied, resulting in a stable market price.

Question 5

factors influencing supply

Answer 5

prices
global events
disruptions in the supply chain
changes in costs of production

Question 6

factors influencing demand

Answer 6

changes in disposable income
change in types of related products

Question 7

how can governments change a market

Answer 7

price ceilings (lower price below eequilibrium), price floor (increase price above equilibrium)

Question 8

reasons for governments to raise prices

Answer 8

to ensure workers are paid enough
discourage consumption
support producer income

Question 9

reasons for governments to lower prices

Answer 9

to tackle inflatiion
to promote necessities
prevent class gap

Question 10

surplus

Answer 10

refers to the excess quantity of a good or service that is available in the market

Question 11

shortage

Answer 11

refers to a situation where the quantity demanded for a good or service exceeds the quantity supplied