Economic Concepts and Production Factors

The video tutorial explores the fundamental economic problem of scarcity, where limited resources meet unlimited wants, leading to choices and opportunity costs. It delves into the allocation of resources, distinguishing between economic and free goods, and the roles of economic agents. The tutorial also differentiates between needs and wants, referencing the UN Declaration of Human Rights. It explains the factors of production—capital, enterprise, land, and labor—and the interdependence of economic sectors. Finally, it discusses opportunity cost and the production possibility curve, emphasizing technological advancements.

What is the primary cause of economic problems according to the video?

• Limited wants

• Unlimited resources

• Scarcity of resources

• Excessive production

Which of the following is NOT a factor of production in the CELL mnemonic?

• Labor

• Logistics

• Enterprise

• Capital

What distinguishes economic goods from free goods?

• Free goods require payment

• Economic goods are limited in supply

• Free goods are limited in supply

• Economic goods are unlimited in supply

Which question is NOT one of the basic economic questions discussed?

• Where to produce?

• How to produce?

• What to produce?

• For whom to produce?

According to the video, what is the difference between goods and services?

• Both are non-physical items

• Goods are physical, services are non-physical

• Goods are non-physical, services are physical

• Both are physical items

What is considered a 'need' according to the United Nations Declaration of Human Rights?

• Luxury car

• Basic education

• Designer clothing

• Vacation home

Which sector of the economy involves transforming raw materials into finished products?

• Primary sector

• Secondary sector

• Tertiary sector

• Quaternary sector

What is the role of labor in the factors of production?

• Supplying raw materials

• Providing capital

• Offering services

• Performing work

What does the production possibility curve illustrate?

• The maximum amount of goods and services that can be produced

• The minimum amount of goods and services that can be produced

• The average amount of goods and services that can be produced

• The total cost of goods and services

How can technological advancements affect the production possibility curve?

• Shift it outward

• Make it linear

• Eliminate it

• Shift it inward