| what are the differences between needs and wants? | needs are limited and are needed for survival.
wants are unlimited and are for improving standards of living. |
| compare the similarities between goods and services | 1. Both can increase consumer satisfaction/utility-.
2. Both are called products. |
| compare the contrasts between goods and services | 1. measurability for goods are tangible while for services are intangible.
2. visibility for goods are visible while for services are invisible. |
| name the factors of production | 1. land.
2. labour.
3. enterprise.
4. capital. |
| what is the basic economic problem? | finite resources and unlimited wants. |
| what is opportunity cost? | refers to the next best alternative given up or for gone when the best/alternative is made. |
| what are consumer goods? | it is an economic good that satisfies an immediate consumer needs and wants. |
| what are capital goods? | eg. screwdrivers, drills, they do not satisfy any immediate human needs or wants. |
| define the factors of production | 1. labour - people who contribute mental or physical effects.
2. land - natural resources used to produce products.
3. enterprise - a set of collective skills to produce products.
4. capital - human made resources used to produce other goods and service e.g. screwdrivers, machinery. |
| what are factor rewards? | 1. rent - land.
2. wages - labour.
3. interest - capital.
4. profit - enterprise. |
| what is factor mobility? | it is the ability to move factors of production out of one production process into another |
| what are the two main types of factor mobility? | 1. occupational mobility - refers to the ability to move factors between different productive tasks.
2. geographic mobility - the ability to move factors of production to different locations. |
| how to know whether PED (Price Elasticity Of Demand) is elastic, unitary or inelastic? | PED > 1, elastic
PED = 1, unitary
PED < 1, inelastic |
| what is the formula to calculate PED? | file:///C:/Users/HP/Pictures/Screenshots/Screenshot%20(127).png
triangle - change
p - price
q - quantity |
| how to find the percentage change in quantity? | file:///C:/Users/HP/Pictures/Screenshots/Screenshot%20(128).png |
| how to find the percentage change in price? | file:///C:/Users/HP/Pictures/Screenshots/Screenshot%20(129).png |
| what is the formula to find out whether PES is inelastic or elastic? | file:///C:/Users/HP/Pictures/Screenshots/Screenshot%20(130).png
file:///C:/Users/HP/Pictures/Screenshots/Screenshot%20(126).png |
| how to check whether elastic or inelastic? | file:///C:/Users/HP/Pictures/Screenshots/Screenshot%20(131).png
a = totally inelastic
b = perfectly elastic |
| list the 3 economic problem: | 1) resources are finite- limited in supply.
2) resources are used up in the production of goods and services.
3) human wants for goods and services are without limit. |
