Q1- Scarcity and what is economics

Question 1

What’s the formal definition of economics?

Answer 1

a branch of knowledge that deals with the production, distribution, consumption, and transfer of wealth

Question 2

What’s the simplest definition of Economics?

Answer 2

the study of making choices

Question 3

Who does microeconomics concern?

Answer 3

Consumers, households, companies, and industries

Question 4

What is an example of a question in microeconomics?

Answer 4

• the price of gasoline has increased, how will I afford the change?
• if we lower the prices of our cars, how will consumers respond?

Question 5

Who does macroeconomics concern?

Answer 5

economies of regions, entire countries, and supra-national blocs of countries (EU)

Question 6

what is an example of a question in macroeconomics?

Answer 6

• what is the level of GDP in a country?
• what’s going on with the unemployment rate across Canada?
• what is causing inflation?

Question 7

What’s another term for resources?

Answer 7

Factors of production

Question 8

What are the general types of resources?

Answer 8

goods and services

Question 9

What is scarcity?

Answer 9

when there is a lack of resources due to unlimited wants and limited resources

Question 10

def. act of making resources

Answer 10

production

Question 11

def. act of using resources

Answer 11

consumption

Question 12

why is scarcity inevitable?

Answer 12

greed

Question 13

what are the consequences of scarcity?

Answer 13

you need to make choices

Question 14

what is opportunity cost?

Answer 14

Missing out on the beneifts of an alternate option (second choice)

Question 15

What are the four types of economies?

Answer 15

Traditional, Command, market, and mixed

Question 16

In a traditional system, what is produced and how?

Answer 16

Based on family traditions

Question 17

In a traditional system, what is consumed and by whom?

Answer 17

Higher ranking people get more

Question 18

In a traditional system, why are resources sometimes idle?

Answer 18

disease, bad weather, etc.

Question 19

In a traditional system, is productive capacity growing?

Answer 19

no

Question 20

In a command system, what is produced and how?

Answer 20

governement decides how much is produced, guesses about wants

Question 21

In a command system, what is consumed and by whom?

Answer 21

government decides how much is consumed and guesses what people want

Question 22

In a command system, why are resources idle?

Answer 22

because the government guesses what people want/need, and if they don’t need it, the resources aren’t used

Question 23

In a command system, is production capacity growing?

Answer 23

They try to grow but usually its difficult

Question 24

In a market system, what is produced and how?

Answer 24

individuals/ companies decide what is produced

Question 25

In a market system, what is consumed and by whom?

Answer 25

individuals and companie consume what they want

Question 26

Why are resources sometimes ile in a market system?

Answer 26

During recessions, they can be especially hard to get out of

Question 27

In a market system, is production capacity growing?

Answer 27

Yes there is potential for growth

Question 28

What are the two likely combinations for Ownership of Goods Variations?

Answer 28

private-ownership market economy and public-ownership planned economy