Economics Basics

Limitedness of Resources with compared to needs and wants.

• Scarcity

• Alternative

• Need

• Economics

The compulsory thing in a society

• Wants

• Scarcity

• Needs

• Resources

Zero Opportunity cost

• A point outside the PPC

• A point on the PPC

• A point inside the PPC

• None of the above

Opportunity cost

• The cost of next best alternatives

• The cost of owner's resources

• The cost that is limited

• The cost that is compulsory to everyone

What is choice?

• Selecting best among Opportunity costs

• Selecting best among Alternatives

• Selecting best among Needs

• Selecting best among Resources

The main conditions for Scarcity are________ and _________

Basic economic questions are

• when to produce and why?

• What to produce?, How to produce? and to whom to produce?

• What to produce?, how long to produce?

Assumption used in PPC

• Production Efficiency

• Economic Efficiency

• Allocative Efficiency

• Fixed capital

In short run,

• Supply is constant

• Capital is constant

• Labor is constant

• Quantity is constant

Demand equation is,

• None of the above