INTRODUCTION

Question 1

Microeconomics

Answer 1

Behaviour of individual consumers, firms and industries

Question 2

Macroeconomics

Answer 2

Behaviour of whole economies (the sum of individual economic decisions)

Question 3

Factors of Production (4)

Answer 3

Land, labour, capital, entrepreneurship

Question 4

Payments of factors of production (4)

Answer 4

Rent (land), wages (labour), interest (capital), profit (entrepreneurship)

Question 5

Scarcity (the basic economic problem)

Answer 5

Not having enough sufficient resources to produce enough to fulfill unlimited wants and needs

Question 6

Production Possibility Curve (PPC)

Answer 6

Only a finite amount can be produced due to scarcity of resources, only possible if all resources in economy are fully and efficiently in use

Question 7

Opportunity cost

Answer 7

Benefit lost from the second-best alternative

Question 8

Economic growth

Answer 8

Increased productive output in economy

Question 9

Economic development

Answer 9

Development of economic wealth for the well-being of inhabitants (per capita income, education, health)

Question 10

Utility

Answer 10

Measure of usefulness and pleasure