SQA Higher Economics UPDATED ACTUAL Exam Questions and
CORRECT Answers
Economic agents - Consumer, Business and Governments.
Agents involved in Economic transactions.
Basic economic problem - the mismatch of unlimited wants and limited economic resources.
Unlimited wants - the insatiable desire of consumers for goods and services that will give them
satisfaction or utility
free market economy - a system in which prices are not controlled by the government
planned economy - economy that relies on a centralized government to control all or most factors
of production and to make all or most production and allocation decisions
mixed economy - An economy in which private enterprise exists in combination with a
considerable amount of government regulation and promotion.
Economic Questions - What to produce? How to produce? For whom to produce?
economic efficiency - wise use of available resources so as to obtain the greatest benefits
possible
Equity - fairness
Productivity - the quantity of goods and services produced from each unit of labor input
CORRECT Answers
Economic agents - Consumer, Business and Governments.
Agents involved in Economic transactions.
Basic economic problem - the mismatch of unlimited wants and limited economic resources.
Unlimited wants - the insatiable desire of consumers for goods and services that will give them
satisfaction or utility
free market economy - a system in which prices are not controlled by the government
planned economy - economy that relies on a centralized government to control all or most factors
of production and to make all or most production and allocation decisions
mixed economy - An economy in which private enterprise exists in combination with a
considerable amount of government regulation and promotion.
Economic Questions - What to produce? How to produce? For whom to produce?
economic efficiency - wise use of available resources so as to obtain the greatest benefits
possible
Equity - fairness
Productivity - the quantity of goods and services produced from each unit of labor input
