Intro to Microeconomics

Question 1

What is the economic problem?

Answer 1

The economic problem refers to the issue of scarcity, as there is not enough resources available to produce all the goods and services required to satisfy needs and wants of all people

Question 2

What are the three economic questions?

Answer 2

1. What products to produce?
2. How should they be produced?
3. Who to produce the products for?

Question 3

What is Opportunity Cost?

Answer 3

Opportunity cost is defined as the value of alternative sacrificed when a choice or decision is made.

Question 4

What are the factors of Production?

Answer 4

1. Land
2. Labour
3. Capital
4. Enterprise

Question 5

What is Land?

Answer 5

a natural resource that refers to the things used in production that come directly for the Earth.

Question 6

What is Labour?

Answer 6

The human resource that refers to the physical or mental exertion by workers during production.

Question 7

What is Capital?

Answer 7

includes the man-made machinery, tools or equipment used to produce goods or services.

Question 8

What is Entreprenuer?

Answer 8

This is another type of human resource as it includes the human management, thought processes and entrepreneurship of workers and owners.

Question 9

What is Microeconomics?

Answer 9

studies the behaviour of individual markets. This includes how households or firms response to changes in demand and supply.

Question 10

What is Macroeconomics?

Answer 10

is the study of the economy as a whole. It focuses on economic growth and fluctuations over time. Macroeconomic terms include inflation rates, unemployment rates and government policies.