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Flashcards in Chapter 1- Section 1 Deck (25):
0

Fundamental economic problem facing all societies; condition that results from society not having enough resources to produce all the things people would like to have

Scarcity

1

The study of how people try to satisfy what appears to be seemingly unlimited and comparing wants through the careful use of relatively scarce resources

Economics

2

A basic requirement for survival and includes food, clothing, and shelter

Need

3

A way of expressing a need ex: food- may decide to have pizza instead of chicken

Want

4

The term want is broader than the term need. True or false?

True

5

There is No such thing as a free lunch. Why?

People still have to be paid for what they produce. Someone always have to pay

6

What are the three basic questions?

WHAT to produce, HOW to produce, and FOR WHOM to produce

7

A society cannot have everything it's people want

WHAT to produce

8

Mass production method (lots of machinery and few workers) or less equipment and more workers

HOW to produce

9

Not enough made for everyone

FOR WHOM to produce

10

Resources required to produce the things we would like to have, are land, capital, labor, and entrepreneurs

Factors of production

11

Refers to the "gifts of nature" or natural resources not created by humans

Land

12

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

Capital

13

The money used to buy the tools and equipment in production

Financial capital

14

People with all their efforts, abilities, and skills

Labor

15

Risk-taker in search of profits who does something new with existing resources

Entrepreneurs

16

Entrepreneurs are thought of as being the ________ in an economy because they exhibit the ability to start new businesses or bring new products to the market

Driving force

17

Process of creating goods and services; when land, capital, labor, and entrepreneurs are all present

Production

18

Economics is a what because it deals with the behavior of people as they deal with the basic issue?

Social science

19

What are for elements to the study of economics?

Description, analysis, explanation, and prediction

20

The dollar value of all final goods and services, and structures produced within a country's borders in a 12-month period

Gross Domestic Product (GDP)

21

Description is important why?

We need to know what the world around us looks like

22

Analysis is important why?

To discover why things work and how things happen

23

Explanation is important why?

If we understand how the economy works, some economic problems will be much easier to address or even fix in the future

24

Prediction is important why?

To make the best decision in situations; the study if economics helps all of us to become more informed citizens and better decision makers