Chapter 1 Vocab

Question 1

study of how society choose to use scarce resources to satisfy its unlimited wants and needs

Answer 1

economics

Question 2

someone who studies economic theory and applies it to the real world

Answer 2

economist

Question 3

the study of a single factor of an economy-such as individuals, households, businesses and industries-rather than an economy as a whole

Answer 3

microeconomics

Question 4

the study of the entire economy or one of its principal sectors

Answer 4

macroeconomics

Question 5

one who buys goods or services for personal use rather than for resale or use in production or manufacturing

Answer 5

consumers

Question 6

person, group or business that makes goods or provides services to satisfy consumers’ needs and wants

Answer 6

producers

Question 7

object or material that can be purchased to satisfy human wants and needs

Answer 7

goods

Question 8

any action or activity that is performed for a fee

Answer 8

service

Question 9

anything used to produce goods or services

Answer 9

resources

Question 10

in economics, any material provided by nature that can be used to produce goods or provide services

Answer 10

Natural resources

Question 11

any human activity-mental or physical-used in the production process

Answer 11

human resource

Question 12

an item that s used in the production of other goods and services

Answer 12

capital resources

Question 13

a finished product that is consumed by an individual

Answer 13

consumer goods

Question 14

scientific and technical techniques used to produce existing products more efficiently or of higher quality

Answer 14

technology

Question 15

someone who undertakes and develops a new business enterprise or develops a new product, risking failure or loss for the possibility of financial gain

Answer 15

entrepreneur

Question 16

the fundamental condition of economics that results from the combination of limited resources and unlimited wants

Answer 16

scarcity

Question 17

to distribute scarce resources – such as money, land, equipment, or labor – in order to satisfy the greatest number of needs and wants

Answer 17

allocate

Question 18

the level of output that results from a given level of input

Answer 18

productivity

Question 19

the production of goods and services using the smallest amount of resources for the greatest amount of output

Answer 19

efficiency

Question 20

the focus of a worker on only one or a few aspects of production in order to improve efficiency

Answer 20

specialization

Question 21

the sacrifice of one good in order to purchase or produce another

Answer 21

trade-off

Question 22

the value lost by rejecting one use of resources in favor of another, in other words, the value of the next nest alternative action that is not taken

Answer 22

opportunity cost

Question 23

the process by which producers and consumers are to provide one type of item in return for another

Answer 23

exchange

Question 24

the direct exchange of goods and services without the use of money

Answer 24

barter

Question 25

any item, typically currency that is commonly accepted in exchange for goods, services, or the settling of debts

Answer 25

money

Question 26

the worth of a good or service for the purposes of exchange, expressed as the amount of money that a consumer is willing to pay for a good or service

Answer 26

value

Question 27

the usefulness of a good or service hat contribute to its value

Answer 27

utility

Question 28

a form of exchange that allows consumers to use items with a promise of repayment over a specified time

Answer 28

Credit

Question 29

the ability to fulfill all of one's needs without assistance

Answer 29

self-sufficiency

Question 30

the relationship of mutual reliance and influence among people businesses, industries, regions and nations

Answer 30

interdependence