80 Questions
What is labor in the context of economics?
Human effort provided in the creation of products and services
What sector of the economy involves manufacturing and processing activities?
Secondary Sector
What is the main characteristic of the Public Sector?
Government-controlled enterprises and services
What kind of goods are consumed immediately or shortly after purchase?
Non-durable Goods
What is the term for the portion of income available for spending or saving after taxes?
Disposable Income
What is a key component of sustainable development?
Recycling
What is a challenge to achieving sustainable development?
Pollution
What is an example of a supportive measure for sustainable development?
Subsidies for environmentally friendly practices
What sector of the economy provides services rather than goods?
Tertiary Sector
Which of the following is a type of consumer group?
Businesses
What is the fundamental economic challenge that requires individuals and societies to make choices?
Scarcity of resources
What type of scarcity occurs when resources are insufficient to produce a good despite its availability?
Absolute scarcity
Which of the following is an example of a free good?
Air
What is the opportunity cost of a choice?
The benefit of the next best alternative
What is an example of an economic good?
Potatoes
What is the term for the primary processes that define economic activity within a society?
Production, exchange, and consumption
What is an example of land, which is a factor of production?
Natural resources used to produce goods and services
What is the term for the foregone benefit of choosing one option over another?
Opportunity cost
What type of scarcity exists when resources are sufficient to satisfy needs but are inaccessible to most due to economic constraints?
Relative scarcity
What is the result of the limited availability of resources?
The need to make choices
What is the primary reason individuals and societies must make choices?
The limited availability of resources
What is the difference between absolute and relative scarcity?
Absolute scarcity refers to the lack of availability, while relative scarcity refers to the lack of affordability
What is the main characteristic of free goods?
They are naturally available without cost
What is the result of choosing one option over another?
The foregone benefit of the next best alternative
What are the primary processes that define economic activity within a society?
Production, Exchange, and Consumption
What is an example of an economic good?
A loaf of bread
Which of the following is a factor of production?
Land
What is the significance of opportunity costs in economics?
It reflects the trade-offs involved in making choices
What is the main difference between economic goods and free goods?
Economic goods require scarce resources to produce, while free goods do not
What is the economic challenge that arises due to the limited availability of resources?
Scarcity
What is the primary role of an entrepreneur in the economy?
To combine labor, capital, and entrepreneurship to create goods and services
Which sector of the economy is responsible for providing services rather than goods?
Tertiary Sector
What is the main difference between the formal and informal sectors?
The inclusion in official economic statistics
What is the primary goal of sustainable economic development?
To achieve economic growth without depleting natural resources or harming human and environmental health
Which of the following is a challenge to achieving sustainable development?
Pollution and greenhouse effects
What is the primary role of households in the economy?
To consume goods and services
What is the primary purpose of exchange rates?
To facilitate international trade
What is the primary goal of government regulatory measures for sustainability?
To curb environmentally harmful activities
Which of the following is an example of a durable good?
Vehicle
What is the primary difference between businesses and households as consumers?
The purpose of consumption
What is the main reason why individuals and societies have to make choices?
Because of the limited availability of resources
What is the difference between absolute and relative scarcity?
Absolute scarcity is when resources are insufficient, while relative scarcity is when resources are sufficient but unaffordable
Which of the following is an example of an economic good?
Potatoes
What is the opportunity cost of a choice?
The foregone benefit of the next best alternative
What are the primary processes that define economic activity within a society?
Production, exchange, and consumption
What is the significance of opportunity costs in economics?
It reflects the trade-offs involved in making choices
Which of the following is a factor of production?
Labor
What is the main characteristic of free goods?
They are naturally available without cost
What is the result of the limited availability of resources?
The necessity of making choices and facing opportunity costs
What is the primary goal of economic activity?
To allocate resources in the most efficient way possible
What is the primary function of entrepreneurship in an economy?
To combine labor, capital, and natural resources to create goods and services
What is the main characteristic of the Tertiary Sector?
It provides services rather than goods
What is the primary difference between the Formal and Informal Sectors?
Formal sector includes registered businesses, while informal sector includes unregistered businesses
What is the primary goal of sustainable economic development?
To conduct economic growth without depleting natural resources or harming human and environmental health
What is the primary role of households in the economy?
To consume goods and services
What is the primary purpose of exchange rates?
To facilitate international trade
What is the primary goal of government regulatory measures for sustainability?
To curb environmentally harmful activities
What is the primary characteristic of non-durable goods?
They are consumed immediately or shortly after purchase
What is the primary role of businesses in the economy?
To purchase capital goods to produce other goods and services
What is the primary challenge to achieving sustainable development?
Pollution and exploitation of labor
What is the underlying reason for the existence of opportunity costs?
The limited availability of resources
Which of the following is an example of relative scarcity?
A lack of access to healthcare in a developing country
What is the primary role of production in economic activity?
To allocate resources efficiently
What is the term for the process of allocating resources to produce goods and services?
Production
Which of the following is an example of an economic good that is not a free good?
Grain
What is the primary reason why governments must make budget allocations?
To address economic constraints
What is the term for the benefit given up when choosing one option over another?
Opportunity cost
Which of the following is a factor of production that is naturally available?
Land
What is the result of making a choice due to the limited availability of resources?
Opportunity costs arise
What is the primary context in which individuals and societies must make choices?
Due to the limited availability of resources
What is the primary reason why sustainable economic development involves integrating economic principles with ethical considerations?
To manage resources effectively and equitably
What is the primary role of entrepreneurship in the economy?
To combine the other three factors of production to create goods and services
What is the primary difference between the primary sector and the secondary sector?
The primary sector involves extraction of natural resources
What is the primary goal of government regulatory measures for sustainability?
To curb environmentally harmful activities
What is the primary difference between businesses and households as consumers?
Businesses purchase capital goods to produce other goods and services
What is the primary purpose of exchange rates?
To determine how much of one currency can be exchanged for another
What is the primary role of government in the economy?
To invest in public goods and services that benefit society as a whole
What is the primary characteristic of the informal sector?
Includes unregistered businesses, which are not included in official economic statistics
What is the primary goal of sustainable economic development?
To manage resources effectively and equitably
What is the primary difference between durable goods and non-durable goods?
Durable goods are long-lasting goods
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