The economic problem 1.1.1

Question 1

what is the economic problem?

Answer 1

The economic problem is where people have unlimited wants and needs but there isnt enough resources.

Question 2

What does the economic problem lead to?

Answer 2

Scarcity.

Question 3

what does scarcity mean?

Answer 3

Scarcity is when there is finite resources but people have infinite wants and needs (economic problem).

Question 4

What is the purpose of economic activity

Answer 4

to fulfill peoples wants and needs

Question 5

what three questions does the economic problem try to answer?

Answer 5

what to produce.who to prduce for,how to produce.

Question 6

what is renewable resources and give one example.

Answer 6

renewable resources can be replenished eg trees

Question 7

what is a oppotunity cost?

Answer 7

An oppoptunity cost is the benefit lost of the next best aleternaitive when making a choise. all resources are scarce so we must make choices to allocate resources.

Question 8

what is non renewable resources and give a example

Answer 8

non renewable resocures have a finite supply eg oil.

Question 9

what is the name when opportunity cost happens but range of alternatives have been given up?

Answer 9

a trade-off

Question 10

who are the economic agents

Answer 10

consumers,producers,government

Question 11

factors of production

Answer 11

land,labour,capital,entrepeunership

Question 12

explain the three questiosn economic problem tries to answer

Answer 12

what?- econ incentive provides info to econ agents on what g and s to produce.
How?- factors of production to produce gns
who? in free market economy produce according to demand and supply