principles of econ 1st year

Question 1

define scarcity

Answer 1

Individuals, businesses, and
governments have unlimited wants but limited
resources.

Question 2

4 factors of production

Answer 2

land labour, capital entreperneurship

Question 3

consumer goods and capitla goods

Answer 3

ocapital goods produce consumer goods
in the long run producing more capital goods brings about more economic growth

Question 4

Explain the difference between explicit and implicit costs

Answer 4

implicit costs are the needed costs of time and your own personal resources you are using towards the firm that could have been used elsewhere had you chosen a different path they arent out of pocket monetary costs.

Explicit costs are the traditional monetary out-of-pocket costs associated with choosing one course of action.

Question 5

marginal utility adds the previous to the current

Answer 5

it decrases after every unit but the smaller next one is added to the previous kep this in mind when you have tpo add utility of two goods