Revision
- Ch.1 The nature of economic problem
Key words
1. Resources: Factors used to produce goods and services.
2. The economic problem: Resources are limited and wants are
unlimited.
3. Scarcity: Lack of resources.
4. Free Good: A product that is available in abundance (unlimited)
and does not need resources to make it.
5. Economic Good: Goods that require resources to produce them.
They need human efforts and have a price.
Q. What is Economics?
Ans- Decisions related to; Production, consumption and allocation of
resources.
Q. Three basic Economics questions?
Ans- 1. What to produce?
2. How to produce?
3.For whom to produce?
Q. Define Economic Problem.
Ans- Unlimited wants and limited resources which leads to scarcity.
Q. Define need and want.
Ans- Need are the things which are essential for living whereas wants
are the things which are not essential for living.
Q. What are Non- Renewable resources?
Ans- Nonrenewable energy comes from sources that will run out or will
not be replenished in our lifetimes.
Q. What are Renewable resources?
Ans- A renewable resource is a resource of which there is an endless
supply because it can be replenished.
Ch.2 Factors of production
Factors of Production: The economic resources of land, labour, capital
and enterprise
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