Think of some of your most important needs and wants, and then explain
whether these are satisfied by goods or by services.
Why is economics a study of choices? 3 Explain the relationship
between scarcity and the need to avoid waste in the use of resources.
What are the three basic economic questions that must be addressed by
any economy?
What are the factors of production?
Define opportunity cost.
Think of a choice you have made today, and describe it’s opportunity
cost.
Does productive efficiency means producing by use of the fewest
possible resources (less wastages)?

Does less wastages of resources mean producing at the lowest possible
cost?
Why is an economy’s actual output most likely to be located somewhere
inside its PPC?
_________ is a Latin expression that means ‘other things equal’.
Another way of saying this is that all other things are assumed to be
constant or unchanging.
Which country do you think is more ‘developed’: one with higher levels
of output and low provision of social services (such as health care
services and sanitation), or one with lower levels of output and higher
provision of social services?

Define ‘demand
What is the law of demand?
Explain whether the law of demand shows a negative or positive
relationship.

Show the law of demand in a diagram.
Distinguish between a ‘change in demand’ and a ‘change in quantity
demanded
On a graph, show ‘change in demand’ and a ‘change in quantity
demanded
State 3 non price determinants of demand.
Using diagrams, show the impact of each of the following on the
demand curve for “product Alpha”:
A news report claims that use of product Alpha has harmful effects on
health
The price of substitute good: “Product Beta” falls.
Define ‘supply’.
What is the law of supply?

Explain whether the law of supply shows a positive or negative
relationship.
Show the law of supply in a diagram
Distinguish between a ‘change in supply’ and a ‘change in quantity
supplied’
List 2 non-price determinants of supply?
Using diagrams, show the impact of each of the following on the supply
curve of “product Alexa”
(a) The number of firms in the industry producing product Alexa
decreases. (b) The price of oil, a key input in the production of
product Alexa, increases.

Use a demand and supply diagram to: (a) show equilibrium price and
quantity
Use supply and demand diagrams to illustrate the following events.
(a) Freezing weather destroys the orange crop and the price of
oranges rises
(b)A new technology of production for computers is developed and
the price of computers falls.
Consumer income increases (A is a normal good).
The price of substitute good B falls.
The government is considering imposing a $ 0.50 tax per litre of
petrol (gasoline). Show the impact on supply of gasoline on a diagram
Using diagrams, show how the supply curve shifts when a subsidy is
granted to firms producing a particular product.

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1 Your most important needs and wants can be satisfied by either goods or services Goods are physical items that can be bought and sold while services are intangible tasks performed by people or busin... View the full answer