Unit 1.1 and Unit 1.2

The economic problem refers to:

• unlimited resources

• the elimination of all wants in society

• getting rich quicker

• the issue of limited resources and unlimited wants

Opportunity cost refers to:

• Chilling in Europe for the summer

• The value of the next best alternative forgone when making a choice.

• The amount of money spent on a decision.

• The profit earned from a chosen option.

The factors of production are:

• Starbucks, McDonalds. Vinfast, and Apple

• Money, machines, markets, and management

• Land, labor, capital, and entrepreneurship

• Goods, services, supply, and demand

Specialization refers to:

• Focusing on a specific task or skill to increase efficiency.

• Doing all tasks equally without focusing on one.

• Avoiding learning new skills.

• Sharing all tasks equally among everyone.

The purpose of business activity is to:

• Building AI bots

• reduce the number of businesses in the market

• increase unemployment in the economy

• satisfy human wants by producing goods and services

Added value refers to:

• amount of profits after taxes

• the total revenue generated by a business

• the difference between the selling price and the cost of inputs

• the initial investment made in a business

The primary, secondary, and tertiary sectors differ in the type of economic activities they involve.

• The primary sector involves extraction of raw materials, the secondary sector involves manufacturing, and the tertiary sector involves services.

• The primary sector involves services, the secondary sector involves extraction of raw materials, and the tertiary sector involves manufacturing.

• The primary sector involves manufacturing, the secondary sector involves services, and the tertiary sector involves extraction of raw materials.

• The primary sector involves services, the secondary sector involves manufacturing, and the tertiary sector involves extraction of raw materials.

The difference between the private and the public sectors is:

• Both sectors are owned by the government

• The public sector is owned by the government, while the private sector is owned by individuals or companies.

• The private sector provides only public services.

• The public sector is always more profitable than the private sector.

What is a 'Need'? Fill in the blank: A Need is a good or service essential for living. Examples include ______ and food and shelter.

• water

• television

• jewelry

• video games

What is a 'Want'? Fill in the blank: A Want is a good or service that people would like to have, but is not required for living. Examples include cars and ______.

• eating food

• drinking water

• breathing air

• watching movies