Outcome 1

Question 1

Define economics

Answer 1

The social science that studies the production, distribution and consumption of goods and services. It is the study of scarcity and individuals choice to get what they want

Question 2

Production

Answer 2

The process of making a good or service

Question 3

Expenditure

Answer 3

The money spent in order to produce a good or service

Question 4

Income

Answer 4

Money early as a result of producing a good or service

Question 5

Define economy

Answer 5

The production, distribution, trade and consumption of goods and services in a society. It relies on production and consumption activities to determine how scarce resources are allocated.

Question 6

Positive economics

Answer 6

Statements or claims based on fact and are objective. They can be verified or tested to be either true or false

Question 7

Normative economics

Answer 7

Statements or claims based on opinion or value judgement. Given their subjective nature they cannot be verified to be wither true or false

Question 8

Economic activity

Answer 8

Activity that happens to make out life more enjoyable. Economic activity will require transactions. An example of this is purchasing a ticket for a bus or sending a text

Question 9

Transaction

Answer 9

A transaction involves the exchange of money for a good or service in return. Transactions are essential for a functioning economy