Chapter 1-Section 2

Question 0

An item that is economically useful or satisfies an economic want

Answer 0

Good

Question 1

Goods and services that are useful, relatively scarce, and transferable to others

Answer 1

Economic products

Question 2

Intended for final use by individuals

Answer 2

Consumer good

Question 3

Manufactured goods are used to produce other goods and services

Answer 3

Capital goods

Question 4

Any good that lasts three or more years when used on a regular basis

Answer 4

Durable good

Question 5

An item that lasts for less than three years when used on a regular basis

Answer 5

Non durable goods

Question 6

Work that is performed for someone

Answer 6

Service

Question 7

What is the difference between a good and service?

Answer 7

A service is intangible

Question 8

A person who uses goods and services to satisfy wants and needs

Answer 8

Consumer

Question 9

Refers to a worth that can be expressed in dollars an cents

Answer 9

Value

Question 10

The situation where some necessities have little monetary value, whereas some non-necessities have a much higher value

Answer 10

Paradox of value

Question 11

Capacity to be useful and provide satisfaction

Answer 11

Utility

Question 12

For something to have value it must be scarce and have utility. True it false?

Answer 12

True

Question 13

Accumulation of those products that are tangible, scarce, useful, and transferable from one person to another

Answer 13

Wealth

Question 14

Goods are counted as wealth, but services aren’t. Why?

Answer 14

Services are intangible

Question 15

A location or other mechanism that allows buyers and sellers to exchange a certain economic product

Answer 15

Market

Question 16

Markets where productive resources are bought and sold

Answer 16

Factor markets

Question 17

Entrepreneurs can hire labor, acquire land, and borrow money in what market?

Answer 17

A factor market

Question 18

Markets where producers sell their goods and services to consumers

Answer 18

Product markets

Question 19

After individuals receive their income from the resources they sell where do they spend it?

Answer 19

Product market

Question 20

Occurs when a nation’s total output of goods and services increases over time

Answer 20

Economic growth

Question 21

A measure of the amount of output produced by a given amount of inputs in a specific period of time

Answer 21

Productivity

Question 22

Productivity is often discussed in terms of what?

Answer 22

Labor

Question 23

Takes place when work is arranged so that individual workers do fewer tasks than before

Answer 23

Division of labor

Question 24

Takes place when factors of production perform tasks that they can do relatively more efficiently than others

Answer 24

Specialization

Question 25

The sum of the skills, abilities, health, and motivation of people

Answer 25

Human capital

Question 26

We rely on others, and others rely on us, to provide the goods and services that we consume

Answer 26

Economic interdependence

Question 27

What is a key to circular flow?

Answer 27

Market

Question 28

How dothe division of labor and specialization affect productivity?

Answer 28

Increases productivity dramatically

Question 29

In what ways can government, businesses, and individuals invest human capital?

Answer 29

Government: education and health care; businesses: training people in skills; individuals: completing high school, going to college