ECS1501
SEMESTER 2 , 2020
ASSIGNMENT 1
Answer: 2 – when resources are insufficient to produce all the desired goods and services
Notes: The basic economic problem (also referred to as the scarcity problem), arises because the
resources that we have available for the production of goods and services are limited, while our
needs and wants for goods and services are unlimited. It is this fundamental problem of scarcity that
is the common thread that binds all the topics that are studied in economics.
Answer: 2 – resources are limited but wants are unlimited
Notes: Economics start from the basis that people’s needs and wants are unlimited.
1
, Answer: 4 – land, capital , labour and entrepreneurship
Notes: Resources include everything in the world around us that we can use to produce goods and
services to satisfy our needs and wants. It is usually classified in the following three main groups:
- Natural resources, such as land, water, minerals, animals and plants
- Human resources, such as entrepreneurs or labour such as economists, builders, architects,
accountants, lawyers and cleaners
- Man-made resources such as machines and infrastructure that are available to use to
produce goods – in economics we call these resources capital.
Answer: 2 – highest-valued
Notes: Opportunity cost is a broader concept that doesn’t just include the amount you have to pay,
because it also includes the best alternative that you have to give up in order to do what you are
doing.
Opportunity cost is the value to the decision maker of the best alternative that is given up.
2
SEMESTER 2 , 2020
ASSIGNMENT 1
Answer: 2 – when resources are insufficient to produce all the desired goods and services
Notes: The basic economic problem (also referred to as the scarcity problem), arises because the
resources that we have available for the production of goods and services are limited, while our
needs and wants for goods and services are unlimited. It is this fundamental problem of scarcity that
is the common thread that binds all the topics that are studied in economics.
Answer: 2 – resources are limited but wants are unlimited
Notes: Economics start from the basis that people’s needs and wants are unlimited.
1
, Answer: 4 – land, capital , labour and entrepreneurship
Notes: Resources include everything in the world around us that we can use to produce goods and
services to satisfy our needs and wants. It is usually classified in the following three main groups:
- Natural resources, such as land, water, minerals, animals and plants
- Human resources, such as entrepreneurs or labour such as economists, builders, architects,
accountants, lawyers and cleaners
- Man-made resources such as machines and infrastructure that are available to use to
produce goods – in economics we call these resources capital.
Answer: 2 – highest-valued
Notes: Opportunity cost is a broader concept that doesn’t just include the amount you have to pay,
because it also includes the best alternative that you have to give up in order to do what you are
doing.
Opportunity cost is the value to the decision maker of the best alternative that is given up.
2
