Question 1 1

Question 1
1.1 Scarcity is what an individual or a country does not have in order to satisfy their needs or wants, for an example, an individual wants to go and buy branded shoes but is short of money to do so. We say that person’s scarcity is money.

1.2 Because people end up choosing something that was not your first choicealternatives because of limited resources.

1.3 No, because things change and the world also changes. If we look at how technology is dominating industries then you would know that people or humans are slowly but surely no longer needed as labour, which means no compensationmoney for them.

QUESTION 2
2.1 Opportunity cost of something happens when you have to give up the best of that thing in order
to get another thing.

2.2 No, because an economy revolves around money whether it’s an expenditure or an income.

-We also need money to purchase items
QUESTION 3continuation
3.2 Yes, because both the gun and butter are equal which means the costs of making them are well
Managed.
3.3
3.4 Because the more the economy produces guns the more it does not have money to produce
Butter. Government has to choose which one to spend money on, which in this case guns were
Chose.

QUESTION 4
4.1
4.2 True
4.3 False
4.4
4.5