Idk

Question 1

What does ceteris paribus mean?

Answer 1

All other things being equal

Question 2

What is a positive statement?

Answer 2

A statement that can be supported with evidence and fact

Question 3

What is a normative statement?

Answer 3

They are value based and involve opinions

Question 4

What are capital goods?

Answer 4

They are goods that are reinvested back into the business - eg. Machinery

Question 5

What are consumer goods?

Answer 5

They are the finished products
Often made by capital goods

Question 6

What is a PPF?

Answer 6

The maximum possible output combinations of 2 goods or services an economy can achieve when all resources are fully used

Question 7

What are the 4 factors of production?

Answer 7

• capital (technology)
• enterprise
• labour
• land (natural resources)

Question 8

Name 3 land factors

Answer 8

• natural gas
• diamonds
• lobster fisheries

Question 9

Name 3 labour factors

Answer 9

• engineers
• cleaning firms
• immigration

Question 10

Name 2 Capital factors

Answer 10

• tractors
• tech software

Question 11

name 3 enterprise factors

Answer 11

• modern art
• graphic design
• universities

Question 12

Why would the production be closer to the axis in a PPF diagram?

Answer 12

Because not all the resources are being fully utilised

Question 13

Is a point to the right of the PPF attainable?

Answer 13

It can be if we can get more of the 4 FOP

Question 14

What is the opportunity cost?

Answer 14

How many you give up

Question 15

What does a PPF show?

Answer 15

It shows the maximum possible output combination of 2 goods or services an economy can achieve when all resources are fully utilised

Question 16

Who uses consumer goods?

Answer 16

People - to satisfy their needs and wants

Question 17

What are capital goods used for?

Answer 17

Production of other goods ( factories, offices, roads, machines and equipment )

Question 18

What is the division of labour?

Answer 18

The specialisation of labour into separate tasks

Question 19

What does division of labour ensure?

Answer 19

Higher productivity per worker

Question 20

What is productivity?

Answer 20

Controlling your inputs and maximising your outputs

Question 21

Positives of specialisation of labour:

Answer 21

• become more skilled
• faster
• more organised
• better sales

Question 22

Negatives of specialisation of labour:

Answer 22

• boring
• hard to cover
• higher skill level = higher pay
• training and development

Question 23

What is country specialisation?

Answer 23

When a country specialises its resources into producing a limited range of goods and services

Question 24

What is absolute advantage?

Answer 24

Being able to produce more of something than another country ( assuming both have the same amount of resources/FOP available )

Question 25

What is comparative advantage?

Answer 25

Being able to produce something at a much lower opportunity cost than another country
( all FOP = )

Question 26

Positives of county specialisation:

Answer 26

• make full use of all resources
• increases output
• improves quality
• allows for exports

Question 27

Negatives of country specialisation:

Answer 27

• what if there’s a world recession?
• risk of over-specialising
• overuse of natural resources

Question 28

Problems with specialisation :

Answer 28

• recession
• low cost competitors
• risky if everyone works in same industry