Chapter 1 Test Vocab

Question 1

The branch of knowledge concerned with the production, consumption, distribution of goods and services and the transfer of wealth

Answer 1

Economics

Question 2

The study of individuals, households, and companies behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individuals and economic issues. (Small pic)

Answer 2

Microeconomics

Question 3

The branch of economics that studies the behavior and performance of an economy as a whole(cite, nation, global) it focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation. (Big pic)

Answer 3

Macroeconomics

Question 4

The condition that results from society not having enough resources to produce all the things ppl would like to have

Answer 4

Scarcity

Question 5

Basic requirements for survival

Answer 5

Need

Question 6

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

Answer 6

Want

Question 7

A useful tangible item that is used to satisfy a need or a want

Answer 7

Goods

Question 8

An item that lasts 3 years or more when used regularly

Answer 8

Durable item

Question 9

An item that lasts fewer than 3 years when used regularly

Answer 9

Non-Durable Goods

Question 10

Goods bought and used by individual consumers

Answer 10

Consumer goods

Question 11

A tool or good used to produce other goods

Answer 11

Capital good

Question 12

Work or labor performed by someone

Answer 12

Service

Question 13

Something that can be touched

Answer 13

Tangible

Question 14

The monetary worth of a good or service

Answer 14

Value

Question 15

A contradiction between the high values of a nonessential item and a low value of an essential item

Answer 15

Paradox of value

Question 16

(Father of capitalism) in his book he argued that for something to have value it must be scarce and have utility

Answer 16

Adam smith

Question 17

These 2 factors determine value

Answer 17

Scarcity and utility

Question 18

The accumulation of products that are tangible, scarce and have utility

Answer 18

Wealth

Question 19

TINSTAAFL

Answer 19

there is no such things as a free lunch

Question 20

Person, company, or country that makes, grows or supplies goods or commodities for sale

Answer 20

Producer

Question 21

The cost/value of the next best alternative given up

Answer 21

Opportunity costs

Question 22

Alternative choice that must be given up in favor of the choice we select

Answer 22

Trade-offs

Question 23

A person who purchases goods and services for personal use

Answer 23

Consumer

Question 24

Increase in a nations total output of goods and services over time

Answer 24

Economic growth

Question 25

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 25

Productivity

Question 26

Sum of people skills, abilities, health, and motivation

Answer 26

Human capital

Question 27

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

Answer 27

Division of labor

Question 28

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

Answer 28

Specialization

Question 29

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

Answer 29

Economic interdependence

Question 30

Meeting place Or mechanism through which buyers and sellers of an economic product come together; May be local, Regional, national, or global

Answer 30

Market

Question 31

Process or means by which something can be accomplished

Answer 31

Mechanism

Question 32

Market in which productive resources are bought and sold

Answer 32

Factor markets

Question 33

Market in which goods and services are bought and sold

Answer 33

Product markets

Question 34

Simplified version of a complex concepts or behavior expressed in the form of a graph, figure, equation or diagram

Answer 34

Economic model

Question 35

Something taken for granted; some thing we think it’s true

Answer 35

Assumptions

Question 36

Comparison of the cost of an action to its benefits

Answer 36

Cost-Benefit analysis

Question 37

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

Answer 37

Free enterprise economy

Question 38

Quality of life based on ownership of necessities and luxuries that make life easier

Answer 38

Standard of living

Question 39

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

Answer 39

Gross domestic product

Question 40

Diagram representing all possible combinations of goods and or services and economy can produce when our product resources are fully employed

Answer 40

productions possibilities curve