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WorksheetsEconomics C1 & C2- The Economic Problem & Factors of Production
Total questions: 15
Worksheet time: 8mins
Define Scarcity.
When there is lack of items
When there is a high demand but low supply
When there is less food at McDonald’s
It is a situation where there are not enough resources to satisfy everybody’s wants.
Explain the Nature of the Economic problem
When there is too much money in a country and the value of money goes down
When the poverty levels in a country reduce tourism, resulting in higher taxes
When a country is in too much debt
It is when unlimited wants exceeds limited resources which leads to the problem of choice which results in opportunity cost. There are 3 questions which every society has to answer
What to produce? ,how to produce? For whom to produce?
Define economic goods
A product which requires resources to produce it and therefore has an opportunity cost.
Goods which are required to produce other goods.
Define free goods
The good that you receive after a "Buy one get one free" offer
A product which does not require any resources to make it and so does not have an opportunity cost
Define consumer goods
Goods that are used only once, and perish once used. Eg- Food, mint
Consumer goods are those goods which are directly used for final consumption.
Define capital goods
Capital goods are those goods which are required to produce other goods.
Goods that have capital value
Define Merit Goods
Goods that do not affect the third party negatively and have positive externalities
Goods with merit value
Define demerit goods
Goods that affect the third party negatively and have negative externalities
Goods with decreasing value over time
What is the correct definition for capital
Man made goods that are used for the production of raw materials
Raw materials used for the production of man made goods
Man made goods made for the further production of other goods
Which one of the following is a capital
Road
Water
Fish
Rocks
Define Enterprise
The willingness to take control of goods
The ability to take risks and make decisions in a business
Any man made good available freely on the earth
Define land
Any natural resource used to produce other goods
Any natural resource freely available on, below or above the surface of the earth
Ability of humans to produce natural resources
Define Labor
The willingness of a business to make decisions
Any mental or physical work done by humans
How tired a laborer gets after working
Define durable goods
Goods with a long lasting shelf life
Goods that are strong and sturdy
What is the primary sector
extraction of raw materials eg. Mining, Agriculture, Fishing and Forestry
goods and services that are not entirely produced
