1.1 the economic problem

Question 1

what are the 3 economic agents

Answer 1

consumer, firms, government

Question 2

what are the 4 factors of production

Answer 2

land, labour, capital, enterprise

Question 3

what’s a positive statement

Answer 3

statement capable of being verified by resorting to fact or further investigation

Question 4

what’s a normative statement

Answer 4

contains a value judgement which can’t be verified

Question 5

define FOP land

Answer 5

all natural resources and its produce

Question 6

define FOP labour

Answer 6

the physical and mental work of labourers

Question 7

define FOP capital

Answer 7

man made goods used to produce more goods including factories and machinery

Question 8

define FOP enterprise

Answer 8

the F.O.P that organises all other F.O.P’s in order to produce a good or service and takes all the risk in the hope of making a profit

Question 9

The purpose of the economy is to produce…

Answer 9

goods and services

Question 10

We meet needs and wants, to provide…

Answer 10

Economic welfare

Question 11

what is the economic problem

Answer 11

scarce resources