Topics 1: Introduction to Microeconomics (The Economic problem #2)

Question 1

Define Labour

Answer 1

as a factor of production is the workforce.

Question 2

Define Land

Answer 2

as a factor of production, is all natural resources.

Question 3

Define Non-renewable resources

Answer 3

resources, such as coal or oil,
which once exploited cannot be replaced.

Question 4

Define Non-sustainable resource

Answer 4

a resource which can be economically exploited in such as a way that its stock is being reduced over time.

Question 5

Define Opportunity cost

Answer 5

the benefits forgone of the next best
alternative.

Question 6

Define Renewable resources

Answer 6

resources that can be exploited over and over again because they have the potential to renew themselves.

Question 7

Define scarce resources

Answer 7

resources that are limited in supply so
that choices have to be made about their use.

Question 8

Define wants

Answer 8

desires for the consumption of goods and services. That is not a necessity.

Question 9

Define working or circulating capital

Answer 9

resources that are in the production system waiting to be transformed into goods or other materials before being finally sold to the consumer.