EKN 110 QUESTIONS &
ANSWERS(RATED A+)
Economics - ANSWERThe social science concerned by how individuals, institutions
and society makes optimal choices under conditions of scarcity
economic perspective - ANSWERa viewpoint that envisions individuals and
institutions making rational decisions by comparing the marginal benefits and
marginal costs associated with their actions
Economic Resources - ANSWERthe land, labour, capital and entrepreneurial ability
that are used in the production of goods and services; productive agents; factors of
production.
opportunity cost - ANSWERthe value of the next best alternative that is forfeited to
undertake the activity
Utility - ANSWERthe pleasure, happiness, or satisfaction obtained from consuming a
good or service
Scarcity - ANSWERA situation in which unlimited wants exceed the limited resources
available to fulfill those wants
rational consumer - ANSWERsomeone who maximizes utility subject to a budget
constraint
consumers in the economic perspective - ANSWERGreatest possible U with
unlimited wants/needs and certain budget constraints
producers in the economic perspective - ANSWERMaximum profit with cost
constraints and certain production techniques
Macroeconomics - ANSWER• It examines either the economy as a whole or its basic
subdivisions or aggregates (government, households and business sectors).
Microeconomics - ANSWERIt is concerned with individual units such as a person, a
household, a firm or an industry
Positive Economics - ANSWER• It focuses on facts and cause-and-effect
relationships. • Description, theory development and theory testing
what are the 3 main things the economic perspective stresses on? - ANSWER1.
resource scarcity and the necessity of making choices
2. the assumption of rational behaviour
3. comparisons of marginal benefit and marginal cost (marginal analysis)
ANSWERS(RATED A+)
Economics - ANSWERThe social science concerned by how individuals, institutions
and society makes optimal choices under conditions of scarcity
economic perspective - ANSWERa viewpoint that envisions individuals and
institutions making rational decisions by comparing the marginal benefits and
marginal costs associated with their actions
Economic Resources - ANSWERthe land, labour, capital and entrepreneurial ability
that are used in the production of goods and services; productive agents; factors of
production.
opportunity cost - ANSWERthe value of the next best alternative that is forfeited to
undertake the activity
Utility - ANSWERthe pleasure, happiness, or satisfaction obtained from consuming a
good or service
Scarcity - ANSWERA situation in which unlimited wants exceed the limited resources
available to fulfill those wants
rational consumer - ANSWERsomeone who maximizes utility subject to a budget
constraint
consumers in the economic perspective - ANSWERGreatest possible U with
unlimited wants/needs and certain budget constraints
producers in the economic perspective - ANSWERMaximum profit with cost
constraints and certain production techniques
Macroeconomics - ANSWER• It examines either the economy as a whole or its basic
subdivisions or aggregates (government, households and business sectors).
Microeconomics - ANSWERIt is concerned with individual units such as a person, a
household, a firm or an industry
Positive Economics - ANSWER• It focuses on facts and cause-and-effect
relationships. • Description, theory development and theory testing
what are the 3 main things the economic perspective stresses on? - ANSWER1.
resource scarcity and the necessity of making choices
2. the assumption of rational behaviour
3. comparisons of marginal benefit and marginal cost (marginal analysis)
