Unit 1: Introduction to Economics - Eslon Ngeendepi

Flashcards covering the fundamental concepts of economics, including scarcity, factors of production, Maslow's hierarchy, opportunity cost, and the Production Possibilities Curve based on the lecture notes by Eslon Ngeendepi.

Economics is a __________ science that studies the principles governing the effective utilisation of limited resources.

Social

The study of individual entities in the economy, such as households and businesses, is known as __________.

Microeconomics

Macroeconomics focuses on the economy as a whole, specifically looking at total levels of economic activity such as the __________ product.

Gross Domestic

While human wants and needs are unlimited, resources are __________, which forces people to make choices.

Limited

The four main factors of production include land, labour, capital, and __________.

Entrepreneurship

The payment or reward received for the use of natural resources (land) is __________.

Rent

Physical and intellectual effort provided by people in the production process is called __________.

Labour

The human resource known as labour receives payment in the form of __________.

Wages

Man-made resources like tools, machines, and buildings used in production are referred to as __________.

Capital

The payment earned for the factor of production called capital is __________.

Interest

The reward for the act of organising and assuming the risk of a business venture is __________.

Profit

According to Abraham Maslow, __________ needs include the most basic requirements like food, clothes, and shelter.

Physiological

In Maslow's hierarchy, the need for physical and financial security represents __________ needs.

Security

The desire for personal development and self-advancement is classified by Maslow as __________ needs.

Self-actualisation

__________ is the value of the next best alternative that must be sacrificed when making a choice.

Opportunity cost

A __________ illustrates graphically the maximum combinations of two goods that an economy can produce given fixed resources and technology.

Production Possibilities Curve

The Production Possibilities Curve (PPC) is bowed outward because of the law of __________ opportunity costs.

Increasing

A point located __________ the Production Possibilities Curve indicates that resources are not being used fully or efficiently.

Inside

On a Production Possibilities Curve, all points __________ the curve are unattainable with currently available resources and technology.

Outside

Economic growth is illustrated by an __________ shift of the entire Production Possibilities Curve.

Outward

Economic growth can be caused by __________ changes, such as computerisation, that make sectors more productive.

Technological

Any reduction in the resources of a country, such as from war or natural disasters, will cause an economic __________.

Decline

An economic decline results in the Production Possibilities Curve shifting to the __________.

Left

The basic economic problem of "how" to produce involves choosing between methods that are either capital-intensive or __________-intensive.

Labour

In the production possibilities schedule for Namibia, to increase food production from $0$ to $1$ ton, the opportunity cost is __________ houses.

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