1.1 The Economic Problem

Question 1

What is the study of economics?

Answer 1

The study of economics is how to allocate these resources in the best possible way.

Question 2

What are needs?

Answer 2

Something essential to survive.

Question 3

What are wants?

Answer 3

Something that you would like but is not essential to survival.

Question 4

What are resources?

Answer 4

Resources are something used to produce output.

Question 5

What is productivity?

Answer 5

Output per worker per period of time.

Question 6

What are the four factors of productions?

Answer 6

Land, labour, capital and enterprise.

Question 7

What is the economic problem?

Answer 7

The economic problem is that there is a scarcity of resources.