Service Industry Consumption Quiz

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Who is credited as the father of economics?

Adam Smith

What work by Adam Smith laid the foundation for many principles of economics?

An Enquiry into the Nature and Causes of the Wealth of Nations

According to Socrates, what did the term 'economics' originally mean?

the rules of good household management

What is the nature of economics, as mentioned in the text?

universal Signup and view all the answers

What is the basic economic problem?

The basic economic problem is the issue of scarcity and unlimited wants. Signup and view all the answers

Define scarcity in economics.

Scarcity refers to the limitation of productive resources like land, labour, capital, and entrepreneurship. Signup and view all the answers

Explain the concept of 'unlimited needs and wants' in economics.

In economics, 'unlimited needs and wants' refers to the fact that humans have unlimited desires for goods and services, beyond just the basic needs for survival. Signup and view all the answers

What are some examples of tough choices faced by consumers, workers, producers, and governments due to the basic economic problem?

Consumers may have to choose between universities, electronic devices, and leisure activities. Workers may face trade-offs between projects, suppliers, and work-life balance. Producers and governments face decisions related to investments, employee wages, and business growth. Signup and view all the answers

What are the four factors of production?

Land, labour, capital, and enterprise Signup and view all the answers

Who is credited with revolutionizing the use of the personal computer by simplifying the complex task of using it?

Steve Jobs Signup and view all the answers

What are the rewards for the factors of production?

Rent for land, wages for labour, interest for capital, and profits for enterprise Signup and view all the answers

What is factor mobility, and why is it important in a global society?

Factor mobility is the ability to transfer factors of production like land, labour, and capital from one production task to another. It is important in a global society to adapt to changing demands and opportunities. Signup and view all the answers

Define scarcity and provide examples from the case study.

Scarcity is the limitation of resources like land, labour, capital, and enterprise. Examples from the case study include food, water, and energy. Signup and view all the answers

Describe the basic economic problem from the point of view of the growing middle class.

The growing middle class has growing wants and needs, which creates a scarcity issue for the future. Scarce resources have become more noticeable with the rise of the middle class in developing nations. As the income and population of the new middle class grows, their desire for goods and services will continue to grow because their desires, like all human desires, are unlimited. Signup and view all the answers

What are economic goods, and how do they contribute to an economy's GDP?

Economic goods are items that have monetary value and are produced with the goal of earning income and satisfying unlimited wants. They contribute to an economy's GDP by adding value and creating the foundation for economic development. Signup and view all the answers

Explain the categories of economic goods and provide examples of each category.

Economic goods include consumer goods, which are the final goods sold in retail stores, such as durable goods (e.g., laptops, furniture) and non-durable goods (e.g., food, cosmetics). Economic services are actions that use the human capital of the seller to satisfy a specific want or need of the consumer. Signup and view all the answers

Define free goods and economic goods.

Free goods are available without limits, able to consume without reducing the quantity to others and have zero opportunity cost to society. Economic goods add value to GDP, require the use of scarce resources, have a monetary value or price in the market, and have an opportunity cost. Signup and view all the answers

Do Facebook, Twitter, or Google exhibit any characteristics of a free good?

No, Facebook, Twitter, and Google do not exhibit characteristics of a free good. They do not meet the criteria of being available without limits, having zero opportunity cost to society, or not using scarce resources to produce the good. Signup and view all the answers

Are the following examples free goods or economic goods: social media platforms (e.g., Facebook, Twitter), and smartphones (e.g., iPhone)?

Social media platforms are economic goods, while smartphones (e.g., iPhone) are also economic goods. Signup and view all the answers

What are the characteristics of Steve Jobs as an entrepreneur?

Steve Jobs saw the potential of certain ideas, brought those ideas to production and market, and changed the personal computer industry by creating simple-to-use devices. He demonstrated the characteristics of an innovative and visionary entrepreneur. Signup and view all the answers

What is the difference between occupational mobility and geographic mobility?

Occupational mobility is when a resource changes tasks, while geographic mobility is when a resource changes location. Signup and view all the answers

How does education, training, and experience affect the opportunity for occupational mobility?

Education, training, and experience increase the opportunity for occupational mobility. Signup and view all the answers

What are some characteristics that enhance the mobility of labour?

Using English as the global language, technology allowing virtual global mobility, supportive laws and regulations, and good transport links enhance the mobility of labour. Signup and view all the answers

Give an example of occupational mobility of capital.

A tourist bus being repurposed and sold to a freight company is an example of occupational mobility of capital. Signup and view all the answers

How is enterprise different from other factors of production in terms of mobility?

Enterprise is the most mobile factor of production, both occupationally and geographically, relying on the entrepreneur's willingness and capability to transfer skills from one industry to another. Signup and view all the answers