The Nature of Economics
What is Economics?
What is The study of how humans use scarce resources to produce goods and services to create wealth
What are the sectors of the economy involves extracting raw materials from the earth?
What is The Primary Sector, Secondary Sector and Tertiary Sector.
What is the reward for Labor?
Wat is wages or salaries
What causes the Basic Economic Problem?
What is Human wants are unlimited, but resources are limited.
Give one factor that influences economic decisions made by individuals.
What is Income level, tastes and preferences, or family size.
List the four factors of production.
What is Land, Labour, Capital, and Entrepreneurship.
What are the two main branches of Economics?
What is Microeconomics and Macroeconomics.
Which sector processes raw materials into finished goods? And give an example
What is Secondary, converting trees into wood or ply
Define Capital and give an example
What is Goods used to produce other goods, e.g., machinery, tools.
What is Opportunity Cost?
What is The next best alternative forgone when a choice is made or the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.
Give one way the government influences economic decisions.
What is Through taxes, subsidies, laws, and regulations.
Who is an Entrepreneur?
What is A person who organizes the factors of production and takes business risks.
Name one factor that could cause an outward shift of the Production Possibility Frontier (PPF).
What is Technological progress, discovery of new resources, or population growth.
resource base is a factor that influence firms decision making in the economy, can you explain what resource base means and how it influences their decision making
What is The resource base refers to the quantity and quality of resources a firm has at its disposal. A firm with limited raw materials or outdated equipment may have to scale down production
How do we calculate Labor Productivity?
What is Labor Productivity = Quantity of Output รท Quantity of Labor Used.