introduction

Question 1

what is economics?

Answer 1

science that studies human behaviour as a rs between ends and scarce means which have alternative uses.
What do people want and need,
how are goods and services produced, who should enjoy these goods and services?
Resources and limited and we have to make decisions on how to use them

Question 2

factors of production

Answer 2

land, labour, capital, entrepreneurship which are all limited

Question 3

opportunity cost

Answer 3

what you give up in order to gain something else

Question 4

marginal changes

Answer 4

extra benefit/loss you get from buying one more unit of a product or an action.
incremental changes.

Question 5

rationality

Answer 5

economic agents seek to mini/maximise outcomes when making decisions.
marginal benefit=marginal cost

Assuming people are rational behaviour can be manipulated by incentives- creates opportunities for policymakers

Question 6

capitalist market

Answer 6

private ownership of prod factors, exchange via price mech, firms driven by profits. So markets are a good way to allocate resources via de-centralised decision making.

Question 7

pure market economy

Answer 7

no govt intervention and econ agents are left to their own devices.

Question 8

market failure

Answer 8

where scarce resources aren’t allocated to their most efficient use by free markets.

Question 9

microeconomics

Answer 9

behaviour of individual markets and firms at a disaggregated level

Question 10

macroeconomic

Answer 10

aggregate behaviour of economy