Quiz 1-3 Study Guide Flashcards Preview

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Flashcards in Quiz 1-3 Study Guide Deck (59)
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1

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

Economics

2

Air, food, water, shelter

Need

3

Something we desire

Want

4

Actions or activities

Services

5

Physical objects

Goods

6

Knowledge and skills a worker gains through education and experience

Human capital

7

Effort that a person devotes to a task for pay

Labor

8

Producers will not or cannot offer goods or services at the current price

Shortage

9

Limited quantities of resources that is used to produce other goods and services

Scarcity

10

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

Physical capital

11

Land, labor, and capital

Factors of production

12

Human-made objects used to create other goods and services

Capital

13

Ambitious leaders who decide how to combine land, labor, and capital resources to create new goods and services

Entrepreneurs

14

Which of the following is not considered a need according to your book ?

A nice car

15

Which if the following is a want according to your book ?

A nice car

16

Which of the following is not considered a country's resources ?

Air

17

Cost always refers to money

False

18

Economics may operate ineffectively

True

19

A production possibilities curve shows alternative ways to use an economy's productive resources

True

20

Thinking of the margin is only about thinking about how much more you can do

False

21

In your own words, define economics

How people satisfy their needs and the wants by making a different choice

22

In your own words, define wants and needs

Needs- the things for survival
Wants- other things not needed for survival

23

In your own words, describe trade-offs

Something we sacrifice when we make a decision

24

If there is a large supply and low demand, prices would typically

Fall

25

If there is a short supply and a high demand, prices would typically

Rise

26

A shortage is always permanent

No

27

Economics is the study of

Scarcity

28

Scarcity means something is temporarily unavailable

No

29

If IBM issues a bond and you buy their bonds, you own part of the company

No

30

If you buy IBM stock, you own part of the company

Yes