Economics Revision

Economics – the study of money  and societies make decisions about ways  to use scarce resources to fulfill wants and  needs.

• True

• False

Macroeconomics-The big picture

Microeconomics–How do individuals make  economic decisions

• True

• False

NEEDS – “stuff” we must have to survive,  generally:  food, shelter, clothing and a nintendo Switch

• True

• False

WANTS –Fancy food, shelter, clothing, big  screen TVs, jewelry, conveniences

• True

• False

What are opportunity costs?

• stuff” we would really like to  have

• stuff” we must have to survive,  generally:  food, shelter, clothing

• the loss of other alternatives when one alternative is chosen.

• one  thing  over all the other  possibilities

What are the four factors of production

• Land

  Labour

  Finance

  Capital

• Land

  Labour

  Capital

  Entreprise

• Land

  Labour

  Market Structure

  Capital

• Capital

  Land

  Labour

  Resources

Resource refers to all the materials available in our environment which are technologically accessible, economically feasible and culturally sustainable and help us to satisfy our needs and wants.

• True

• False

Marginal utility is the added satisfaction that a consumer gets from having no unit of a good or service.

• True

• False

Total fixed costs are the sum of all consistent, non-variable expenses a company must pay

• True

• False

Marginal cost is the cost added by producing one additional unit of a product or service.

• True

• False