Theme 1 economics

• What is the basic economic problem?


  Resources have to be allocated between competing uses due to unlimited wants and scarce resources.
• What does capital refer to in economics?


  Capital is the stock of manufactured goods used in the production of goods and services.
• What does making a choice in economics involve?


  Making a choice involves the alternative uses of scarce resources.
• What are free goods?


  Free goods are abundant in supply and have no opportunity cost.
• What is human capital?


  Human capital is the value of the productive potential of an individual or group of workers, including skills and education.
• What does labour refer to in the context of production?


  Labour refers to the workforce as a factor of production.
• What is meant by land in economic terms?


  Land refers to all natural resources as a factor of production.
• What are needs in economics?


  Needs are the minimum necessary for a human being.
• What are non-renewable resources?


  Non-renewable resources are those that cannot be replaced once exploited, such as coal or oil.
• What is opportunity cost?


  Opportunity cost is the benefits forgone of the next best alternative when a choice is made.
• What are scarce resources?


  Scarce resources are limited in supply, requiring choices about their use.
• What is a sustainable resource?


  A sustainable resource is a renewable resource that is economically exploited without diminishing its availability.
• What are wants in economics?

  Wants are desires for the consumption of goods and services.
• What is working or circulating capital?


  Working or circulating capital refers to resources within a production system waiting to be transformed into goods.
• What is the typical job application process?

  The typical job application process involves submitting a resume and cover letter.
• What does it mean to forgo something in economics?


  To forgo something means to give up the next best alternative.
• Why is money not guaranteed in economic choices?

  Money is not guaranteed because choices involve trade-offs and opportunity costs.
• What is the significance of experience in job applications?


  Experience is significant as it demonstrates skills and qualifications to potential employers.
• What is the likelihood of graduates being unemployed?


  The likelihood of graduates being unemployed varies based on the job market.
• What is the role of universities in student numbers?


  Universities play a role in determining the number of students entering the job market.
• How does the cost of education affect the return on investment for graduates?


  The cost of education affects the return on investment by influencing future earnings potential.
• What is a positive return on investment in education?

  A positive return on investment in education means that future earnings exceed the cost of education.