Ch 1 - Scarcity

Question 1

A condition that results from society not having enough resources to produce all the things people want

Answer 1

Scarcity

Question 2

The study of how people try to satisfy seemingly unlimited and competing needs and wants with the careful use of scarce resources

Answer 2

Economics

Question 3

We have ____ resources yet ____ wants.

Answer 3

limited, unlimited

Question 4

A basic requirement for survival, including food, clothing, and shelter.

Answer 4

A need

Question 5

Something we would like to have but is not necessary for survival.

Answer 5

A want

Question 6

A tangible economic product that is useful, transferable to other, and used to satisfy wants and needs.

Answer 6

A good

Question 7

A good that lasts for at least 3 years when used regularly

Answer 7

Durable good

Question 8

an item that wears out, is used up, or lasts for fewer than three years when used regularly

Answer 8

A nondurable good

Question 9

a good intended for final use by consumers other than business

Answer 9

A consumer good

Question 10

a tool, equipment, or other manufactured good used to produce other goods and services

Answer 10

a capital good

Question 11

the work or labor performance for someone; an economic product that includes haircuts, home repairs, and forms of entertainment.

Answer 11

Service

Question 12

the monetary worth of a good or service as determined by the market

Answer 12

value

Question 13

the ability or capacity of a good or service to be useful and give satisfaction to someone

Answer 13

utility

Question 14

Characteristics of Goods (4)

Answer 14

Tangibility
Scarceness
Utility
Transferability

Question 15

the sum of tangible economic goods that are scarce, useful, and transferable from one person to another; excludes services

Answer 15

Wealth

Question 16

3 Questions all societies face in regards to production

Answer 16

What to produce
How to produce
For Whom to produce

Question 17

the monetary value of all final goods, services, and structures produced within a country’s national borders during a one-year period

Answer 17

Gross Domestic Product (GDP)

Question 18

The scope of economics (4)

Answer 18

Description
Analysis
Explanation
Prediction

Question 19

What does TINSTAFL stand for?

Answer 19

“There is no such thing as a free lunch”

Question 20

The productive resources needed to produce goods

Answer 20

Factors of Production

Question 21

What are the 4 factors of production

Answer 21

Land
Capital
Labor
Entrepreneurs

Question 22

the natural resources or “gifts of nature” not created by human effort

Answer 22

natural resources

Question 23

the tools, equipment, and factories used in the production of goods and services

Answer 23

Capital Resources

Question 24

the people with all their abilities and efforts; does not include the entrepreneur

Answer 24

Labor resources

Question 25

the risk-taking individuals who introduce new products or services in search of profits

Answer 25

Entrepreneurs

Question 26

a diagram representing all possible combinations of goods and/or services an economy can produce when all productive resources are fully employed

Answer 26

Production Possibilities Curve

Question 27

the cost of the next best alternative use of money, time, or resources, when one choice is made rather than another

Answer 27

Opportunity Cost

Question 28

the alternative that must be given up when one choice is made rather than another

Answer 28

trade-off

Question 29

5 economic rights humans have

Answer 29

Right to safety right to be informed right to choose right to be heard right to redress

Question 30

a social movement that was aimed at promoting the interests of consumers

Answer 30

Consumerism

Question 31

the increase in a nations total output of goods and services over time

Answer 31

Economic growth

Question 32

the measure of the amount of output produced in a specific time period with a given amount of resources; normally refers to labor, but can apply to all factors of production

Answer 32

Productivity

Question 33

the sum of people's skills, abilities, health, and motivation

Answer 33

Human Capital

Question 34

the division of work into a number of separate tasks to be performed by different workers

Answer 34

Division of Labor

Question 35

the assignment of tasks to the workers, factories, regions, or nations that can perform them most efficiently

Answer 35

Specialization

Question 36

the mutual dependence of the economic activities of one person, company, region, or nation on those of another person, company, region, or nation

Answer 36

Economic interdependence

Question 37

the meeting place or mechanism through which buyers and sellers of an economic product come together; may be local, regional, national, or global

Answer 37

market

Question 38

a market in which productive resources are bought and sold

Answer 38

Factor Market

Question 39

a market in which goods and services are bought and sold

Answer 39

Product Market

Question 40

comparison of the cost of an action to its benefits

Answer 40

Cost-benefit analysis

Question 41

market economy in which privately owned businesses have the freedom to operate for a profit with limited government intervention

Answer 41

Free Enterprise Economy