What is economics?

Question 1

the economic problem

Answer 1

infinite number of wants, finite number of resources
we want to manage the resources in the best possible way to enhance society

Question 2

need

Answer 2

essential

Question 3

want

Answer 3

non essential

Question 4

renewable

Answer 4

reblenishavble

Question 5

non renewable

Answer 5

non replenishable

Question 6

law of deminishing returns

Answer 6

the more of a resource you get the harder it is to find

Question 7

centeral purpose of economic activity

Answer 7

the production of goods and services to satisfy needs and wants

Question 8

what is the benefit of economic activity?

Answer 8

improves economic welfare
benefits individuals, firms or society in the production of goods and services

Question 9

positive statements

Answer 9

objective

Question 10

normative statement

Answer 10

opinionated and subjective

Question 11

free market characteristics

Answer 11

competition
freedom of choice
limited government
people have specalisation

Question 12

command economy characteristics

Answer 12

government housing
no self interest
no competition

Question 13

economic agents

Answer 13

consumer
government
firms