4.1

Question 1

what is a social science

Answer 1

observation of human behaviour

Question 2

what is a normative statement

Answer 2

they are opinionised statements

Question 3

what is an economic model

Answer 3

simplified description of reality,designed to yield hypotheses about economic behaviour that can be tested

Question 4

what is ceteris l’airbus

Answer 4

all other things being equal

Question 5

why do economists find it hard to conduct science expirements

Answer 5

there are difficulties in carrying out expirements under controlled conditions to test a hypothesis

Question 6

words for a positive statement

Answer 6

will, is

Question 7

words in normative statements

Answer 7

ought to
must
should

Question 8

an example of a value judgement

Answer 8

is whether or not to increase the minimum wage it’s a value judgement because it involves a decision about how much ppl should be paid

Question 9

what is scarcity

Answer 9

means the state of being in short supply of a product or service

Question 10

what is a renewable resource

Answer 10

a source that can be replenished faster than it is used up like wood wind solar energy

Question 11

what is a non renewable resource

Answer 11

a resource that is used up before it’s replenished like:
crude oil
natural gas

Question 12

4 factors of production

Answer 12

capital
land
labour
enterprise

Question 13

what is land

Answer 13

it is the land that business uses
rent is the reward examples are
clay
wood
forestry

Question 14

what is the reward for labour

Answer 14

wages

Question 15

what is the reward for capital

Answer 15

interest

Question 16

what is the reward for enterprise

Answer 16

profit

Question 17

why do opportunity costs exist

Answer 17

because of scarcity anytime we do something we have to do forgo doing something else we wanted

Question 18

an example of opportunity cost

Answer 18

the government spending money on education rather than healthcare

Question 19

what is economics

Answer 19

using scarce resources to satisfy unlimited wants

Question 20

what is labour

Answer 20

the people that work for the business

Question 21

capital

Answer 21

man made aid to production

Question 22

what are capital goods

Answer 22

physical assets that a company uses in production process to manufacture products that the consumer will use later

Question 23

what are consumer goods

Answer 23

goods purchased for consumption and not used later to produce another consumer food

Question 24

what are free goods

Answer 24

goods that are not scarce and available without limit

Question 25

what are consumer durables

Answer 25

goods that do not need to be purchased very often and last atleast 3 years

Question 26

what are non durables

Answer 26

consumer goods in an economy that are consumed in one use or is used up over a short period of time like water

Question 27

what does the PPC show

Answer 27

the maximum output in an economy

Question 28

what happen if the product is underneath the PPC

Answer 28

it is inefficient and it isn’t using all of its resources

Question 29

what happens if the product is above the PPC

Answer 29

it is unobtainable

Question 30

what does an outward shift show in PPF

Answer 30

balanced economic growth

Question 31

what is a natural science

Answer 31

scientists observe aspects of the universe

Question 32

how economists come up with a theory

Answer 32

1)observe consumer behaviour 2)form hypothesis of how consumers spend 3)make predictions form hypothesis 4)use evidence to test predictions 5)theory then gets tested more so no cheats

Question 33

what is microeconomics

Answer 33

the study of how to best solve the basic economic problems which are scarce resources

Question 34

what are the 3 choices on how we allocate our resources

Answer 34

what to produce how to produce for whom to produce for

Question 35

how to determine if the opportunity cost was worth it

Answer 35

the value of our opportunity cost is greater than the value of our current choice we made then it’s a bad decision and if the value of our current choice is better than the opportunity cost it would be a good decision

Question 36

what is demand

Answer 36

the quantity that the consumers are willing to spend on a good or service

Question 37

what is derived demand

Answer 37

when the demand comes from something else eg printer, printing ink

Question 38

if the price changes in a demand curve what happens

Answer 38

causes a movement along the demand curve

Question 39

what if something else changes and prices stay the same

Answer 39

causes a shift of the demand curve

Question 40

what is contraction

Answer 40

demand decreasing

Question 41

what is expansion

Answer 41

demand increases

Question 42

how does a market exist

Answer 42

wherever there are buyers and sellers of a particular good buyers DEMANDS goods from the market whilst sellers supply goods to the market

Question 43

what is effective demand

Answer 43

the willingness and ability of consumers to purchase goods at different prices

Question 44

composite demand

Answer 44

where goods have more than one use

Question 45

what is joint demand

Answer 45

the combined demand of two or more interlinked goods

Question 46

what is relationship between price and demand

Answer 46

there is an inverse relationship between price and demand when price goes down demand goes up lower prices make it more affordable for customers

Question 47

what might cause an shift in demand

Answer 47

Population Income Related Goods Advertising Tax Expectations