Podcast
Questions and Answers
What is the basic economic problem?
What is the basic economic problem?
- Equal distribution of resources to fulfill human wants
- Overabundance of resources relative to human wants
- Scarcity of resources relative to human wants (correct)
- Lack of human wants relative to available resources
What does the production possibility curve illustrate?
What does the production possibility curve illustrate?
- Equal distribution of resources
- Opportunity cost and trade-offs (correct)
- Unlimited resources and wants
- Perfect allocation of resources
What is the primary function of a central bank?
What is the primary function of a central bank?
- Controlling the money supply and interest rates (correct)
- Issuing currency notes
- Regulating stock markets
- Providing loans to individuals
Flashcards
Basic Economic Problem
Basic Economic Problem
The fundamental economic issue of having limited resources to satisfy unlimited human desires.
Production Possibility Curve
Production Possibility Curve
A graph displaying the various combinations of goods and services that can be produced efficiently given the available resources and technology, illustrating opportunity costs and trade-offs.
Primary Function of a Central Bank
Primary Function of a Central Bank
Overseeing the money supply and setting interest rates to manage inflation, stabilize the financial system, and promote economic growth.
