CORRECT WELL DETAILED ANSWERS|LATEST
UPDATE!!!!!!2025/2026|GUARANTEED
scarcity - ANSWER Our inability to get everything we want
incentive - ANSWER A reward that encourages an action or a penalty that discourages
one. Eg. prices
Economics - ANSWER The social science that studies the choices that individuals,
businesses, governments and entire societies make as they cope with scarcity and the
incentives that influence and reconcile those choices.
factors of production - ANSWER The resources used to produce goods and services:
land, labour, capital, entrepreneurship
Two Big Economic Questions - ANSWER 1. How do choices end up determining what,
how, and for whom goods and services get produced?
2. When do choices made in the pursuit of self-interest also promote the social interest?
Goods and aervixes - ANSWER The objects that people value and produce to satisfy
wants
land - ANSWER The "gifts of nature" that we use to produce goods and services
labour - ANSWER The work time and work effort people devote to producing goods
and services
1
, human capital - ANSWER The knowledge and skill that people obtain from education,
on-the-job training, and work experience.
Capital - ANSWER The tools, instruments, machines, buildings, and other
constructions that businesses use to produce goods and services
financial capital - ANSWER ie. money, stocks and bonds. This is not a factor of
production.
Microeconomics - ANSWER The study of choices that individuals and businesses make,
the way these choices interact in markets, and the influence of governments.
Macroeconomics - ANSWER The study of the performance of the national economy
and the global economy.
Entrepreneurship - ANSWER The human resource that organizes labor, land and
capital. Entrepreneurs are the drivers of economic progress.
Land earns... - ANSWER Rent
Labour earns.. - ANSWER Wages
Capital earns... - ANSWER Interest
Entrepreneurship earns... - ANSWER Profit
Which factor of production earns the most income - ANSWER Labour
2
UPDATE!!!!!!2025/2026|GUARANTEED
scarcity - ANSWER Our inability to get everything we want
incentive - ANSWER A reward that encourages an action or a penalty that discourages
one. Eg. prices
Economics - ANSWER The social science that studies the choices that individuals,
businesses, governments and entire societies make as they cope with scarcity and the
incentives that influence and reconcile those choices.
factors of production - ANSWER The resources used to produce goods and services:
land, labour, capital, entrepreneurship
Two Big Economic Questions - ANSWER 1. How do choices end up determining what,
how, and for whom goods and services get produced?
2. When do choices made in the pursuit of self-interest also promote the social interest?
Goods and aervixes - ANSWER The objects that people value and produce to satisfy
wants
land - ANSWER The "gifts of nature" that we use to produce goods and services
labour - ANSWER The work time and work effort people devote to producing goods
and services
1
, human capital - ANSWER The knowledge and skill that people obtain from education,
on-the-job training, and work experience.
Capital - ANSWER The tools, instruments, machines, buildings, and other
constructions that businesses use to produce goods and services
financial capital - ANSWER ie. money, stocks and bonds. This is not a factor of
production.
Microeconomics - ANSWER The study of choices that individuals and businesses make,
the way these choices interact in markets, and the influence of governments.
Macroeconomics - ANSWER The study of the performance of the national economy
and the global economy.
Entrepreneurship - ANSWER The human resource that organizes labor, land and
capital. Entrepreneurs are the drivers of economic progress.
Land earns... - ANSWER Rent
Labour earns.. - ANSWER Wages
Capital earns... - ANSWER Interest
Entrepreneurship earns... - ANSWER Profit
Which factor of production earns the most income - ANSWER Labour
2
