The Nature Of The Basic Economic Problem
Muhtasari
Every society, from the richest country to the poorest village, faces the same stubborn fact: people want more than there is to go round. Wants are unlimited, but the land, labour, capital and enterprise we use to satisfy them are limited. That mismatch is the basic economic problem, and the whole of economics grows out of it.
In this lesson you will see why scarcity forces every consumer, worker, firm and government to choose, and how those choices boil down to three questions every economy must answer: what to produce, how to produce it, and who gets it. You will also meet the production possibility curve, the diagram that turns the idea of choice into something you can see and measure.
Malengo
- definition of the basic economic problem
- the concept of scarcity
- examples of the basic economic problem in the context of: - consumers - workers - producers/firms - governments
- what to produce
- how to produce
- who to produce for
- the difference between economic goods and free goods
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Utakutana na mchanganyiko wa aina mbalimbali za maswali, ikiwemo maswali ya kuchagua jibu sahihi, maswali ya majibu mafupi, na maswali ya insha. Kila swali limebuniwa kwa umakini ili kupima vipengele tofauti vya maarifa yako na ujuzi wa kufikiri kwa makini.
Tumia sehemu hii ya tathmini kama fursa ya kuimarisha uelewa wako wa mada na kubaini maeneo yoyote ambapo unaweza kuhitaji kusoma zaidi. Usikatishwe tamaa na changamoto zozote utakazokutana nazo; badala yake, zitazame kama fursa za kukua na kuboresha.
- The basic economic problem exists because: A. governments tax too much B. wants are unlimited but resources are scarce C. prices are always rising D. some countries are richer than others Answer: B
- The opportunity cost of building a new school is: A. the money spent on the school B. the wages of the builders C. the next best alternative use of those resources D. the number of pupils taught Answer: C
- A point inside a production possibility curve shows that: A. the economy is producing efficiently B. some resources are unused or wasted C. output is at its maximum D. the combination is unattainable Answer: B
- Which of the following is a free good? A. bottled water B. a litre of petrol C. sunlight D. a free school place Answer: C
- Which is NOT one of the three fundamental questions every economy must answer? A. what to produce B. how to produce C. who to produce for D. when to stop producing Answer: D
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