Respuesta :
Answer:
1. Scarcity is the inability to satisfy ones wants using the means available to them
2. Many have defined Economics as a social science that examines the relationship between
- Production
- Distribution and
- Consumption of products and services.
So the three questions are:
What will be produced?
Who will consume the products?
How will it get to the consumer?
3. Land, Labor, capital, and entrepreneurship in economic parlance collectively called the factors of production. Many schools of thought have also added Information to that list.
4. Another word for an entrepreneur is a business owner
5. Most businesses are set up to make a profit. Others to meet an intrinsic goal. However, because every business must operate sustainably, even not-for-profits must at least breakeven to remain in existence
6. The opportunity cost of a thing is the benefit forgone in order to have or possess that thing. The opportunity cost to Jim is the risk of failing the exam giving that he should be prepping of getting ready for the same.
7. In a command economy, the government is in control of all the factors of production and so decides what goods and services will be produced.
8. In capitalist economies, prices are determined by the forces of demand and supply
9-10. the graph was not supplied. Hence the answer could not be provided.
11. The law of supply says that as price rises, (all things being equal), supply will follow in the same direction. This is because rising prices is favorable to the manufacturer of the product as they stand to make more profit.
12. High prices will force demand by consumers down. Consumers also want to maximize value. That is, they want to get the best at the lowest price possible. Hence, for consumers, high prices (all things being equal) will translate to lower quantity purchased.
Producers on the other hand will (all things being equal) attempt to push out more of their products in order to take advantage of the high prices to make more profit.
13. Gas production will most likely translate to increased prices. The demand for gas is inelastic because it is an essential commodity. Hence a drop in the volume available for purchase (all things being equal) will create an upward spiral in prices.
14. The law of Demand says when the price rises, the quantity demanded (all things being equal) goes in the opposite direction, and when prices fall, the quantity demanded of a goodwill (all things being equal will go the opposite direction.
15. Demand for Complimentary or joint goods such as smartphones, data and call credit usually go in the same direction (all things being equal).
16. Advances in technology is leading to a decrease in the supply and demand for compact disk. Because of the availablility of songs and videos online and ease of access to them via the same media, the demand for compact discs which take up a lot of physical space and usually more expensive is take a downward run. This, in turn, is discouraging more production hence the lower the supply of same.
17. The determinants of supply are:
- Cost of raw materials/inputs
- Productivity
- Technology: Better technology will translate to increased supply
- The Number of sellers: the more sellers there is, the more supply there is.
- Taxes and subsidies: Supply and taxes usually go in the opposite direction. Subsidies and supply usually go in the same direction.
- Government regulations: This can stop the supply for a goods or service completely or enhance it greately
- Price Expectations: When supplier expectations about prices are positive, supply goes up. Positive expectation is that the prices will go up.
18. Consumers in order to impact or influence what is produced can choose between substitutes. These choices reflect why they go for a particular service, hence forcing other suppliers to follow the factors which drive demand.
Cheers
