Chapter 1 : Basic Economic Problem

Goods and services that are not necessary for survival

• Needs

• Goods

• Service

• Wants

What is meant by the basic economic problem?

• goods which are unlimited in supply

• those which are limited in supply

• how to allocate scarce resources

• represents the maximum amount of goods

What factors of production are required to construct a road?

• Land

• Labour

• Capital

• Enterprise

How would a firm producing running shoes answer the three basic economic questions, Choose the one is not include the 3 basic economic question

• What to produce.

• How to produce it

• where to produce it

• For whom to produce it

What are the three sectors of industry?

(a)  

Every Sunday morning, we have many alternatives sport such as Running and Playing Football. so, today i choose to play football with my friends, what is the opportunity cost from this case?

• Swimming

• Golf

• Running

• Playing Football

Economics Goods

• water

• plants

• sun light

• car

Free Goods

• Handphone

• House

• air

• machine

Factors can Shifting up the PPC

• Decrease in salary

• bad quality resources

• increase unemployment

• advance Technology

Factor can Shifting down PPC

• advance technology

• increasing wages

• Decreasing Employment

• high consumption rate