Micro 1 : What is economics

Question 1

What is the fundamental economic problem

Answer 1

The fact that people within an economy have infinite wants while there are scarce resources available to meet these wants.

Question 2

What is scarcity

Answer 2

The state of being in short supply, especially relative to how much something is demanded.

Question 3

What is economic activity

Answer 3

providing a good or service in order to satisfy the needs or wants of themselves or others

Question 4

What is opportunity cost

Answer 4

The value of the next best option which is forgone when an economic decision is made.

Question 5

What is a positive statement

Answer 5

An objective, fact based statement which could in principle be shown to be true or false.

Question 6

What is a normative statement

Answer 6

A subjective statement based upon opinion which cannot be proven or disproven.

Question 7

What is a social science

Answer 7

Scientific study (systematic study to gain knowledge and understanding of the world) of human interaction and social relationships.

Question 8

What type of subject is Economics

Answer 8

Social science

Question 9

What is a value judgement

Answer 9

A judgement about what is good or bad, important or valuable, based upon subjective opinion, which informs economic and political decision making.