Applied Economics Grade 12

study of economics in relation to real world situations

• Microeconomics

• Macroeconomics

• Econometrics

• Applied economics

the tension between the limited resources and unlimited wants and needs.

• natural resources

• scarcity

• opportunity cost

• poverty

When economists say that resources are scarce, it means that they are what?

• Limited

• Overflowing

• Rare

• Lacking

Which is NOT a major economic problem?

• How to produce?

• What to produce?

• When to produce?

• For whom to produce?

What do households provide to the resource market?

• people

• income

• money

• land, labor, capital

the three problems of economics is what to produce, how to produce and ....

• when to produce

• where to produce

• which one to produce

• for whom it will be produced

What is meant by opportunity cost?

• The labour used in producing the product

• The next best alternative foregone

• The cost of exploring business opportunities

• The cost of the item selected

this is responsible for the rapid technological change and high living standards during the 1980's.

• entrepreneur

• market

• innovation

• government

this is marketing of goods and services to different economic outlets for allocations to individual consumers.

• production

• distribution

• exchange

• consumption

this factor of production is paid in the form of rent or lease.

• land

• labor

• capital

• entrepreneur