Economic Problems

Economic problems arise because

• People have different tastes and preferences

• Land is limited

• Internet connectivity is insufficient

• Health care is inefficient

Point A is known as ......

• More production of coconut oil

• Limited production of roads

• Inefficient use of resources for the production of coconut oil and roads

• The choice of production between coconut oil and roads

Joe has a limited monthly income of $10,000. He has to make tough choices on his monthly expenditure. If he spends $5,000 on a rental, then that is $5,000 he cannot spend on entertainment.

Which expenditure is the opportunity cost?

• $5,000 he manages to save every month

• $5,000 he spends on rental

• $5,000 he cannot spend on entertainment

• $10,000 he receives for his monthly income

For whom to produce means .....

• Produce for those who are rich

• Produce for those who are poor

• Produce for those who needs the product

• Do not produce for those who does not need the product

Which economic problem does this headline refers to?

• What to produce?

• How to produce?

• For whom is the goods?

• How efficient are the resources?

• Is the economy growing?

I LOVE ECONOMICS because ...

• Economics is FUN

• I have no choice, Economics is the only course I can take

• Economics solve REAL LIFE problems

• Better Economics than Politics

• I do not know

Assume an economy that produces meat and apple.

Research and development breakthrough breeds cows best for milk and meat.

What happen to the economic productions of meat and apple?

• Apple production increases because more cows means more apples.

• PPC shifts outward because production of milk and apple increases.

• PPC shifts outward because production of meat increases.

• Meat production increases because milk production increases.

Below are the concept in economic problems EXCEPT:

• Choices

• Externalities

• Opportunity Cost

• Scarcity

The basic economic problem can never be eliminated.

• true
• false

What does a production possibility curve show?

• The prices of two types of products being produced
• The quantity of capital and consumer goods that people would like to be produced
• The maximum combination of two types of goods that can be produced with given resources.
• The relative profitability of capital and consumer goods