Needs and wants outweigh the amount of resources available.

What is Entrepreneurship

creating a business, willing to take financial risks with hopes of profit

Based on the diagram, how does scarcity most impact the economic choices people make?

People have to decide how best to use the scarce resources they have., People use scarce resources to try to satisfy unlimited wants and needs.

What are the Factors of Production?

Land, Labour, Capital and Enterprise

define opportunity cost

the benefits you could have received

Efficiency along the PPC implies...

To get more of a good, some of another must be given up

Production Possibilities Curve

shows alternative ways to use economy's productive resources

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Economics : Central Problem and Factors of Production

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Questions 15

Answers

1
Define Scarcity
A limited amount of resources compared to prices.
A social science dealing with people's needs and wants.
Needs and wants outweigh the amount of resources available.
A fundamental problem in society.
2
payment for risk-taking or entrepreneurship
capital
demand
supply
profit
3
What is Entrepreneurship
Promoting a product with different means of advertising
Purchasing rights to a company to create your own branch
creating a business, willing to take financial risks with hopes of profit
Making purchases from a small business
4
Reward for the factor of production land
Rent
Labour
Wages
Profit
5
Based on the diagram, how does scarcity most impact the economic choices people make?
People have to decide how best to use the scarce resources they have.
People use the scarcity of a good or service to decide how valuable it is.
People use scarce resources to try to satisfy unlimited wants and needs.
People tend to choose resources that are scarce over those that are not.
6
Which of the following is not assumed in the PPC?
Fixed interest rates
FIxed technology/resources
Full Employment
Comparing 2 goods
7
What are the Factors of Production?
Capital, Land, Labour and Jobs
Goods and Services
Land, Labour, Capital and Enterprise
Work, Land, Labour and Inflation
8
define opportunity cost
the benefits you could have received
total satisfaction received from consuming a good service
the price of a good or service increases
a group of buyers and sellers
9
Factors of production are also called
Oitputs
Human resources
Inputs
Raw materials
10
This is a ppc graph
True
False
11
Efficiency along the PPC implies...
To get more of a good, some of another must be given up
The state of technology is maximized
Goods are produced quickly
Goods are distributed equitably
12
What is economics?
social science
produce and distribute goods and services
all the above
satisfy people's wants and needs
13
PPC shifts outwards due to
no investment in human capital
economic growth
recession
the decrease in unemployment
14
Does business activity combine factors of production?
YES, ONLY FOR SERVICE.
YES, BUT ONLY FOR GOODS.
YES, FOR GOOD AND SERVICE.
NO.
15
Production Possibilities Curve
a curve
shows alternative ways to use economy's productive resources
a graph that shows the curve

Economics : Central Problem and Factors of Production Flashcards | StudBud