Econ Questions

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What are the similarities and differences between needs and wants? Why have the needs and wants of people increased rapidly? Give 5 reasons. What is an ‘input in economics? Name its 2 parts and explain. On which factors does the flow of economic resources depend?

The four factors of production are Land, Labour, Capital and Entrepreneurship. Land 5. What do you mean by land? 6. What are the features of land?(5) Labour 7. What is labour? 8. Give 5 reasons for the different wage rates for different types of labour Capital 9. What is capital? 10.What are the 5 main features of capital? 11.How is capital created? 12.Explain the following terms briefly and describe the relationship between those 3 components. a. Income b. Savings c. Investment 13.Give formulas for a. Net investment b. Savings 14.State the sources that determine the level of investment as a graph 15.Explain the 6 types of capital. Entrepreneurship 16.Explain what you mean by entrepreneurship? 17.What are the main functions of an entrepreneur?(4) 18.Explain the 3 methods of entrepreneurship. 19.What do you mean by “Productivity of resources”? 20.What are the reasons for the increase in productivity of resources?(5) 21.What are the 2 main features of the factors of production? 22.Explain the following basic economic concepts. a. Scarcity of resources b. Choice/ alternative use c. Opportunity cost 23.What are the situations where the opportunity cost is zero?

24.Explain what you mean by economic goods and non-economic goods with examples. 25.Give 5 situations where free goods become economic goods. 26.It is considered that free goods are available in unlimited quantities. But there are exceptional to this. Name and state such exceptional situations. 27.Write the formulas for the following, a. Accountant’s cost b. Economist’s cost c. Accountant’s Profit d. Economist’s profit 28.A person has deposited 100,000 in a bank for 15% annual interest, he decided to use that money and start a business. For that he resigned from his job in which he earned a monthly salary of 5000 and used his own premises which could have been rented out for 2,000 per month. From his business he earned an annual sales revenue of 180,000 and his annual total cost is 40,000 Find out the accountant’s profit and economist’s profit 29.What are the 3 basic economic concepts? Explain each. 30.Write 6 modern economic problems faced by economies today.