Microeconomics tutorial questions
WHAT IS YOUR UNDERSTANDING OF MARKET ECONOMY?
Market economy is defined as an economy in which most goods and services are produced and distributed through free markets.
DISTINGUISH BETWEEN A CAPITALIST ECONOMIC SYSTEM AND SOCIALIST ECONOMIC SYSTEM.
CAPITALIST SYSTEM
SOCIALIST SYSTEM
Capitalist economy system is an economic system in which the ownership and control of important resources such as industries land and capital are in the hands of the private sector of the economy.
Socialist economy system refers to an economic system in which important industries and resources are owned and controlled by the states.
EXPLAIN THE TERM CONSUMER SOVEREIGNITY.
It is defined as the situation in an economy where the desires and needs of consumers control the output of producers.
WHAT ARE FACTORS OF PRODUCTION? LIST AND EXPLAIN THE FOUR FACTORS OF PRODUCTION.
Factor of production is defined as the available resources an individual or business use to further the production of other consumable products.
1. LAND.
2. LABOUR
3. CAPITAL
4. ENTERPRENEUR
LAND: It is the economic resources encompassing natural resources found within a nation.
LABOUR: Labor represents the human capital available to transform raw resources to consumable goods.
CAPITAL: It is referred to as the monetary resources used to start up a business.
ENTERPRENEUR: EntrepreneurUsually have ideas for creating a valuable good or services and assume the risk involved with transforming economic resources into consumer products.
WHAT ARE THE DIFFERENCE BETWEEN ECONOMIC CAPITAL AND FINANCIAL CAPITAL?
ECONOMIC CAPITAL
FINANCIAL CAPITAL
It is the money a financial institution or other trading organization set aside based on its own risk analyses.
It is the capital or money used by entrepreneurs and businesses to buy what they need to make their products or provide the services or to that sector of the economy based on its operations.
EXPLAIN THE TERM ECONOMIC MODEL
Economic model attempts to abstract from
Market economy is defined as an economy in which most goods and services are produced and distributed through free markets.
DISTINGUISH BETWEEN A CAPITALIST ECONOMIC SYSTEM AND SOCIALIST ECONOMIC SYSTEM.
CAPITALIST SYSTEM
SOCIALIST SYSTEM
Capitalist economy system is an economic system in which the ownership and control of important resources such as industries land and capital are in the hands of the private sector of the economy.
Socialist economy system refers to an economic system in which important industries and resources are owned and controlled by the states.
EXPLAIN THE TERM CONSUMER SOVEREIGNITY.
It is defined as the situation in an economy where the desires and needs of consumers control the output of producers.
WHAT ARE FACTORS OF PRODUCTION? LIST AND EXPLAIN THE FOUR FACTORS OF PRODUCTION.
Factor of production is defined as the available resources an individual or business use to further the production of other consumable products.
1. LAND.
2. LABOUR
3. CAPITAL
4. ENTERPRENEUR
LAND: It is the economic resources encompassing natural resources found within a nation.
LABOUR: Labor represents the human capital available to transform raw resources to consumable goods.
CAPITAL: It is referred to as the monetary resources used to start up a business.
ENTERPRENEUR: EntrepreneurUsually have ideas for creating a valuable good or services and assume the risk involved with transforming economic resources into consumer products.
WHAT ARE THE DIFFERENCE BETWEEN ECONOMIC CAPITAL AND FINANCIAL CAPITAL?
ECONOMIC CAPITAL
FINANCIAL CAPITAL
It is the money a financial institution or other trading organization set aside based on its own risk analyses.
It is the capital or money used by entrepreneurs and businesses to buy what they need to make their products or provide the services or to that sector of the economy based on its operations.
EXPLAIN THE TERM ECONOMIC MODEL
Economic model attempts to abstract from