Exam 2017

Question 1

Relative scarcity

Answer 1

Do not have enough resources to satisfy our needs and wants. Scarcity - everything is relative.

Question 2

Opportunity cost

Answer 2

Refers to the benefit that a person could have received, but gave up to take another course of action. Opportunity that was lost.

Question 3

Consumer sovereignty

Answer 3

The situation where the desires and needs of consumers control the output of producers.

Question 4

Needs in economics

Answer 4

goods or services that are required - food, clothing, shelter

Question 5

Wants in economics

Answer 5

good or services that are not necessary, but we desires or wish for - expensive car/house, newest clothes.

Question 6

Public sector

Answer 6

Composed of organisations that are owned and operated by the government. Includes federal, state, or municipal groups.

Question 7

Private sector

Answer 7

composed of organisations that are privately owned and not part of the government. These usually include corporations partnerships.

Question 8

Markets

Answer 8

Medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange.

Question 9

Corporate social responsibility

Answer 9

corporations initiatives to assessing take responsibility for a company effects on environmental and social wellbeing.

Question 10

Economic resources

Answer 10

Goods or services available to individuals and businesses used to produce valuable consumer products. Includes land, labor and capital.

Question 11

Oversupply

Answer 11

An excessive amount of a goods or other substance. Oversupply results when demand is lower than supply.

Question 12

Shortage

Answer 12

A situation in which demand for a good or service exceeds the available supply.

Question 13

Equilibrium

Answer 13

A state where economic forces such as supply and demand are balanced.