Chapter 1 What is Economics

Question 1

Scarcity

Answer 1

Condition that occurs when wants are greater than the resources to satisfy them.

Question 2

Land

Answer 2

Economics term of natural resources- including surface land and water.

Question 3

Labor

Answer 3

Human effort required to produce goods and/or service.

Question 4

Goods

Answer 4

Tangible items people buy

Question 5

Services

Answer 5

Activities done for others for a fee

Question 6

Capital

Answer 6

Manufactured goods that are used to produce other goods and or services

Question 7

Entrepreneurship

Answer 7

Ability of individuals to start new business, develop and introduce new products and processes often involves risk taking

Question 8

Trade off

Answer 8

Exchange one thing for another. (The core of economics)

Question 9

Opportunity Cost

Answer 9

The value of the opportunity given up in a trade off.

Question 10

Production Possibility Curve

Answer 10

To show the maximum combinations of goods and services that can be produced from a fixed amount of resources in given period of time.

Question 11

Microeconomics

Answer 11

Is the branch of economics theory that deals with behavior and decision making by small units such as individuals and firms.

Question 12

Macroeconomics

Answer 12

Is that branch of economics theory dealing with the economy as a whole and decision making by large units such as governments.

Question 13

Economics

Answer 13

The study of how people make choices about ways to use limited resources to satisfy their wants and needs.