Economics Questions

Giving brief reasons, classify each of the issues listed in table 1.1 as primarily areas of microeconomic studies or macroeconomic studies.

What is the difference between needs and wants, and why do we say that wants are unlimited?

List, define and give examples of the three main categories of productive resources that are available to a nation.

Define the basic economic problem of relative scarcity.

We say that society’s wants are unlimited. Explain what is meant by unlimited wants.

Classify the following resources as natural, labour or capital resources.

Distinguish capital resources from natural resources.

There are two main causes of relative scarcity. Explain.

Giving examples, explain how the price of each good or service is a good indicator of its relative scarcity.

What general factors affect the overall size of a nation’s production possibility frontier?