Chapter 1.1

Question 1

Wants

Answer 1

something that people desire but that is not necessary for survival

Question 2

Goods

Answer 2

the physical objects that someone produces

Question 3

Services

Answer 3

the actions or activities that one person performs for another

Question 4

Scarcity

Answer 4

available to meet unlimited wants

Question 5

Shortage

Answer 5

a situation in which consumers want more of a good or service than producers are willing to make available at a particular price

Question 6

Economics

Answer 6

the study of how people seek to satisfy their needs and wants by making choices

Question 7

Entrepreneurs

Answer 7

a person who decides how to combine resources to create goods and services

Question 8

Factors of Production

Answer 8

the resources that are used to make goods and services

land, labor, capital

Question 9

Land

Answer 9

all natural resources used to produce goods and services

Question 10

Labor

Answer 10

the effort people devote to tasks for which they are paid

Question 11

Capital

Answer 11

any human-made resource that is used to produce other goods and services

Question 12

Physical Capital

Answer 12

the human-made objects used to create other goods and services

Question 13

Human Capital

Answer 13

the knowledge and skills a worker gains through education and experience

Question 14

Needs

Answer 14

something essential for survival