Unit 2 - The Birth of Capitalism Part 1: Economics and Importance

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What is the cost of the next best alternative called?

Opportunity cost

What are the 4 factors of production?

Land, 2. Labour, 3. Capital, 4. Entrepreneurship

What is the reward for land in the factors of production?

Rent

What is the economic term for dividing up production to achieve efficiency?

Specialization Signup and view all the answers

What is the measure of the production of an entire country in one year called?

GDP (Gross Domestic Product) Signup and view all the answers

What is economics?

Economics is the study of how individuals and societies make decisions about ways to use scarce resources to fulfill wants and needs. Signup and view all the answers

What are the 5 economic questions that need to be answered?

<ol> <li>What to produce? 2. How much to produce? 3. How to produce it? 4. For whom to produce it? 5. Who gets to make the decisions?</li> </ol> Signup and view all the answers

What is the difference between needs and wants?

Needs are essentials for survival, like food and water, while wants are desires that enhance quality of life but are not necessary for survival. Signup and view all the answers

Explain Maslow's hierarchy of needs.

Maslow's hierarchy of needs is a pyramid representing different levels of needs and wants, from physiological necessities to self-actualization. Signup and view all the answers

What is the difference between macroeconomics and microeconomics?

Macroeconomics focuses on the big picture, while microeconomics examines the smaller picture and individual economic decisions. Signup and view all the answers