1.1 Name any TWO branches of Economics

Here are the answers to the questions:

3.1.1 Name any TWO branches of Economics

• Microeconomics
• Macroeconomics

3.1.2 How can the environment be protected?

• By reducing pollution through stricter regulations and cleaner technologies.
• By promoting sustainable resource management, such as recycling and conservation efforts.

3.2 Study the picture below and answer the questions that follow.

3.2.1 Identify the cause of scarcity from the above picture.

• The cause of scarcity is the combination of unlimited wants and limited resources.

3.2.2 Name one type of scarcity

• Absolute scarcity (or Relative scarcity)

3.2.3 Briefly describe the term production

• Production is the process of combining various inputs (like labor, capital, and raw materials) to create goods and services that satisfy human wants and needs.

3.2.4 Explain the importance of capital goods.

• Capital goods are important because they are used to produce other goods and services. They increase productivity, efficiency, and the overall capacity of an economy to produce more in the future.

3.2.5 Why does scarcity force consumers to make choices?

• Scarcity forces consumers to make choices because their wants are unlimited, but the resources available to satisfy those wants are limited. Since not all desires can be fulfilled, consumers must decide which wants to satisfy and which to forgo, leading to trade-offs and opportunity costs.