Micro 1

Question 1

What’s scarcity ?

Answer 1

The demand for a good or service is greater than the availability of the good or service

Question 2

What’s the basic economic problem

Answer 2

Issue with the scarcity of resources but people have unlimited wants

Question 3

What are basic Economic questions ?

Answer 3

What will be produced , how will it be produced and how will the output society produced be distributed

Question 4

Four factor of production

Answer 4

Land , labour , capital and entrepreneurship

Question 5

What is the role of land

Answer 5

Land can be used as rent and where raw materials are produced

Question 6

What is the role of labour

Answer 6

Labour helps start the production and its physical workforce

Question 7

What is capital

Answer 7

If a machine is used in the production and is non physical

Question 8

What is entrepreneurship

Answer 8

A person who combines the other factors of production to earn a profit