Branches of Economics & Types of Statements
This branch of economics focuses on individual markets and decision-making by households and businesses.
What is microeconomics?
The three main factors of production are land, labour, and this.
What is capital?
The fundamental economic problem caused by unlimited wants but limited resources.
What is relative scarcity?
The value of the next best alternative foregone when a choice is made.
What is opportunity cost?
The production possibility curve shows the trade-off between the production of these.
What are two goods or services?
This branch of economics studies the performance of the entire economy, including inflation, unemployment, and GDP.
What is macroeconomics?
This factor of production includes natural resources like water, minerals, and forests.
What is land?
A scarcity of resources forces individuals, firms and societies to make these.
What are economic decisions?
If you spend $10 on a book instead of a movie ticket, the movie ticket represents this.
What is the opportunity cost?
A point inside the production possibility curve indicates this.
What is under-utilisation of resources?
The statement "Higher taxes reduce disposable income" belongs to this type of economics.
What is positive economics?
The skills and efforts of workers fall under this factor of production.
What is labour?
Prioritising the production of certain goods or services over others requires this process to take place.
What is the allocation of resources?
Opportunity cost can be expressed in terms of money, time, units of a good or service or this.
What is utility (or satisfaction)?
Moving along the curve from one point to another illustrates this concept.
What is the opportunity cost?
This form of analysis incorporates value judgments to recommend economic actions.
What is normative economics?
Machinery, tools, and buildings used in production are examples of this factor.
What is capital?
The difference is the "next best" as opposed to "all other" options when a decision is made.
What is key difference between an opportunity cost and trade-off?
Opportunity cost applies to decisions at these sectors of the economy.
What are households, business, and government sectors?
The production possibility curve assumes resources are used at this level of efficiency.
What is technical efficiency?
The statement "The government should reduce unemployment" is an example of this type of economics.
What is normative economics?
Entrepreneurs are often considered a fourth factor of production, contributing this to the economy.
What entrepreneurship?
The concept of scarcity emphasises that this type of resource is always limited.
What are economic resources?
Choosing between a range of jobs based on salary and benefits highlights this economic concept.
What is a trade-off?
Only one point on the production possibility curve can represent this.
What is allocative efficiency?