Economics: science of scarcity Exam Questions and Answers
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Economics: science of scarcity
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Economics: Science Of Scarcity
Economics: science of scarcity Exam Questions and Answers
Opportunity cost definition - Answer-The value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources.
PPF - Answer-is a curve or a bo...
Economics: science of scarcity Exam
Questions and Answers
Opportunity cost definition - Answer-The value of the best alternative forgone, in a
situation in which a choice needs to be made between several mutually exclusive
alternatives given limited resources.
PPF - Answer-is a curve or a boundary which shows the combinations of two or more
goods and services that can be produced (given technology and full use employment)
whilst using all of the available factor resources efficiently.
Opportunity cost fraction - Answer-Opp cost of 1 unit is (?/x) to equal number of unit
forgone
Opportunity cost fraction - Answer-Opp cost of 1 unit is (?/x) to equal number of unit
forgone
Demand definition - Answer-Willingness and ability to purchase diff quantities of goods
and services at diff prices in a given period of time: other factors unchanged.
Law of demand definition - Answer-There is an inverse relationship between price of a
good and it's quantity demanded
Law of diminishing marginal utility - Answer-as a person increases consumption of a
product - while keeping consumption of other products constant - there is a decline in
the marginal utility that person derives from consuming each additional unit of that
product.
Substitution effect - Answer-An effect caused by a rise in price that induces a consumer
(whose income has remained the same) to buy more of a relatively lower-priced good
and less of a higher-priced one.
Economics definition - Answer-Science of how people employ the limited (scarce)
resources available to them to supply and satisfy their unlimited demand (needs and
wants) for goods and services
Scarcity definition - Answer-The condition in which our wants are greater that the limited
resources available to satisfy those wants
Limited resources - Answer-CELL
Capital
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