VCE Economics Unit 1 AOS1

Front

Which is the definition of economics?

Back

The study of how to use our limited resources wisely and in ways to make individuals and society better off materially to increase living standards.

Front

What is microeconomics?

Back

A branch of economics that looks at the factors that influence the various parts (i.e operations, profitability) that make up the overall Australian economy.

Front

What is macroeconomics?

Back

The branch of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.

Front

True or false: Normative economics is fact-based and can be verified using factual information.

Back

False

Front

True or false: Normative economics is opinion-based and cannot be verified.

Back

True

Front

True or false: Relative scarcity arises because the volume and efficiency of resources available is unlimited, relative to people's needs and wants which are unlimited.

Back

False

Front

If an economy were to produce inside the PPF, what would this indicate?

Back

Underutilisation of resources.

Front

What does a movement from one point to another along a PPF indicate?

Back

A country is allocating more to the production of one good and less to another.

Front

On the two sector circular flow model of the economy, which flow represents the household sector's expenditure on goods and services?

Back

Flow 3

Front

What is a trade-off?

Back

To gain something of value without time or money, we necessarily forego the opportunity to do a range of other things with that time or money.