General Knowledge Questions

Economic resources include land, labour, capital and entrepreneurship. 

Entrepreneurship is also considered an economic resource because individuals are responsible for creating businesses and moving economic resources in the business environment.

These economic resources are also called as Factors of production.

A salary is best described as a fixed amount of income that is paid to an individual on a weekly, bi-weekly or monthly basis.

A salary can also be described as the annual earnings paid out over a year.

If the percent change in quantity demanded is less than the percent change in price, economists label the demand for the good as inelastic.

A good that is inelastic does not have very stretchy demand. In economic terms, the quantity demanded does not change a lot when the price changes.

So, if the price of a good increases by 10 percent and the quantity demanded decreases by only 5 percent or less than 10, that good is said to have inelastic demand.

Hence, in this case, consumers are not considered very sensitive, or responsive, to a change in the price of that good.

The prime cost calculates the use of raw materials and direct labor, but does not factor in indirect expenses, such as advertising and administrative costs.

Supervisor's wages doesn;t come under prime cost.

The law of demand implies that "The higher the price of a good, the lesser the quantity demanded".

For example:

If the rate of a mobile phone increased, the quantity demanded by the customers is decreased.

Another name for false productivity is Spinning your wheels. They use the term for false productivity because your wheels are spinning as you're doing work but you're not going anywhere i.e, making any progress.