1.1 basic economic problem

Question 1

What is the definition of production

Answer 1

using inputs to make outputs to satisfy needs and wants of consumers

Question 2

What is the definition of consumption

Answer 2

using up goods and services to satisfy consumers needs and wants

Question 3

What is the basic economic problem

Answer 3

unlimited wants but scarce resources

Question 4

What is resource allocation

Answer 4

decide how best to use scarce resources in order to satisfy as many need and wants as possible

Question 5

What are factors of production

Answer 5

scarce resources used in production of goods and services to satisfy wants and needs

Question 6

4 factors of production

Answer 6

land-natural resource from earth
labour:people who use knowledge and effort to produce economic goods and services
capital:Human made rresources used to produce other goods and services
enterprise:people who organise factors of production,taking risks and decision to make firms run sucessfully

Question 7

What are factor rewards

Answer 7

payments to factor of production in exchange for supply of services

Question 8

returns on each FoP

Answer 8

land:rent
Labour:wages/salary
enterprise:profit
capital:interest

Question 9

what is factor mobility

Answer 9

ease which resource can be moved from one productive activity to another

Question 10

what is occupational mobility

Answer 10

ability to mvoe factors of production between different tasks,see if workers can move industries

Question 11

What is geographic mobility

Answer 11

ability to move factors of production to different locations