The Basic Economic Problem

Question 1

Scarcity

Answer 1

The situation where peoples unlimited wants always exceed the resources available to satisfy them.

Question 2

Reasons for New Economic growth

Answer 2

-> New technology
-> Improved efficiency
-> Education and Training

Question 3

Needs

Answer 3

The basic requirements for human survival.

Question 4

Wants

Answer 4

Peoples desires for goods and services. They are infinite

Question 5

What is the Basic economic problem?

Answer 5

The situation of finite resources to meet infinite wants

Question 6

What is opportunity costs

Answer 6

Cost of the next best alternative when making a choice

Question 7

What is a PPC

Answer 7

A line that illustrates the maximum output of a combination of 2 goods produced by the economy

Maximum: All resources are being used efficiently

-> Most advanced technology is being used

Question 8

What are Capital goods?

Answer 8

Those produced by firms and used to produce other goods

( Factories machinery, tools and equipment.)

Question 9

What is a consumer good?

Answer 9

Those purchased by households

( Food, cars, furniture)

Question 10

Why does the PPC shift outwards?

Answer 10

A rise in quantity or quality

Question 11

What causes the PPC to shift inwards?

Answer 11

A fall in quantity or quality

Question 12

What are the factors of Production

Answer 12

-> Capital
-> Enterprise
-> Land
-> Labour

Question 13

Who is a level 50 leecher

Answer 13

Kavithan Logeswaran