Here are the answers to your Economics questions: QUESTION 1 1.1 Name TWO kinds of costs considered in Economics. 1.2 List any TWO aims of a business. 1.3 Give TWO examples of explicit costs. 2. GIVE

Here are the answers to your Economics questions:

QUESTION 1

• 1.1 Name TWO kinds of costs considered in Economics.

  • • Explicit costs
  • • Implicit costs

• 1.2 List any TWO aims of a business.

  • • Profit maximisation
  • • Survival

• 1.3 Give TWO examples of explicit costs.

  • • Wages paid to employees
  • • Rent for premises

2. GIVE ONE TERM FOR THE FOLLOWING DESCRIPTIONS

• 2.1 The cost of economic opportunity left somewhere in order to take up current opportunity.

  • Opportunity cost

• 2.2 The cost of all factors of production used in production and running a business.

  • Economic cost

• 2.3 The positive difference between total revenue and explicit costs of production.

  • Accounting profit

• 2.4 The positive difference between total revenue and combination of explicit and implicit costs of production.

  • Economic profit