Economics Questions and Answers

Economic systems are the means by which countries and governments distribute resources and trade goods and services. They are used to control the five factors of production, including: labor, capital, entrepreneurs, physical resources and information resources. An economic system is a system of production, resource allocation, exchange and distribution of goods and services in a society or a given geographic area.

Increases in the production possibilities curve are represented by shifts outward, or to the right, while decreases are represented by shifts inward, or to the left.

When using a PPC, growth is defined as an increase in potential output over time, and illustrated by an outward shift in the curve. An outward shift of a PPC means that an economy has increased its capacity to produce all goods.

Land, sometimes referred to as dry land, is the solid surface of Earth that is not permanently covered by water and is immovable.

Economics is regarded as a science because it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organisations. Economics attempts to explain economic behaviour, which arises when scarce resources are exchanged.

Mining has the potential to have severely adverse effects on the environment including loss of biodiversity, erosion, contamination of surface water, ground water, and soil. The formation of sinkholes is also possible.