Week 3

Question 1

PPF

Answer 1

economic model showing the economic problem & O.C through a graph

Question 2

Ceteris Paribus

Answer 2

Keeping other factors constant

Question 3

Law of increasing costs

Answer 3

As production of goods increases, the O.C also increases

Question 4

Causes of an outward shift

Answer 4

Higher productivity, technology improvement, and extraction of land resources

Question 5

Causes of an inward shift

Answer 5

Damaging effects of natural disasters, large scale labor migration, decline in production of input

Question 6

Consumer goods

Answer 6

Consumers purchasing goods for personal use

Question 7

Capital goods

Answer 7

Producers’ goods of production

Question 8

Complementary goods

Answer 8

Goods which are produced together & consumed with other goods

Question 9

Economic growth

Answer 9

Increase in the capacity of an economy to produce G & S, occurs from increase in quantity of resources/improvement in quality. >Determines living standards