Scarcity

Question 1

What are consumers two basic desires

Answer 1

want

needs

Question 2

___are desires that can be satisfied by consuming a good or service

Answer 2

wants

Question 3

___are things such as food, clothing, and shelter, that are necessary for survival

Answer 3

needs

Question 4

___is the situation that exists when there are not enough resources to meet human wants

Answer 4

scarcity

Question 5

___is the study of how people choose to use scarce resources to satisfy their wants

Answer 5

economics

Question 6

Economics involve

1. Examining how individuals businesses, governments, and societies chose to use ___ to satisfy their wants
2. Organizing, analyzing, and interpreting data about those ___
3. Developing ___ and ___ laws that explain how the economy works and to predict what might happen in the future

Answer 6

1. Scarce resourses
2. economic behaviors
3. theories
   economic laws

Question 7

___is central to the use of scarce resources

Answer 7

choice

Question 8

___affects which goods are mase and which services are provided

Answer 8

scarcity

Question 9

____ are physical objects that can be purchased

Answer 9

goods

Question 10

___ are work that one persin performs for anouther for payment

Answer 10

services

Question 11

___is a person who buys good services for personal use

Answer 11

consumer

Question 12

___is person who makes foods or produces services

Answer 12

producer

Question 13

What are the three basic economic questions?

Answer 13

1. What wil be produced?
2. How will it be produced?
3. For whom will it be produced?

Question 14

The ___ question involves not only what to produce but also how much to produce

Answer 14

first

Question 15

When the ___ question is finally decided, societies must then decide exactly how they are going to get these goods and services to people

Answer 15

third

Question 16

___ are the resources needed to produce goods and services

Answer 16

factors of production

Question 17

What are the four factors of production

Answer 17

land
labor
capitol
entrepreneurship

Question 18

What does the four factors of production have in common?

Answer 18

They are all limited

Question 19

___ includes all the natural resources found on or under the ground that are used to prduce goods and services

Answer 19

Land

Question 20

___is all the human time, effort, and talent that go into the making of products

Answer 20

labor

Question 21

___ is all the resources made and used by people to produce and distribute goods and services

Answer 21

capital

Question 22

___ is all of the producers physical resources

Answer 22

capital

Question 23

Capital is sometimes called ___ capital or ___ capital

Answer 23

physical or real

Question 24

Businesses invest in what kind of capital?

Answer 24

real capital

Question 25

workers invest in what kind of capital?

Answer 25

human capital

Question 26

___ is the knowledge and skills gained through experience

Answer 26

human capital

Question 27

What brings the three factors together

Answer 27

Entrepreneurship

Question 28

___ is the combination of vision, skill, ingenuity, and willingness to take risks that is needed to create and run new businesses

Answer 28

Entrepreneurship

Question 29

___ are also risk takers

Answer 29

Entrepreneurship

Question 30

What are the two factors that shape economic choices?

Answer 30

Incentives | Utility

Question 31

___ are methods used to encourage people to take certain actions

Answer 31

Incentives

Question 32

___ is the benefit or satisfaction from using a good or service

Answer 32

utility

Question 33

When people ___, they consider both incentives and utility

Answer 33

economize

Question 34

Every choice involves ___

Answer 34

costs

Question 35

___ can take the form of money, time, or something you value

Answer 35

costs

Question 36

___do not require all or nothing choices, rather they involve giving up some of one thing to gain more of another

Answer 36

trade-offs

Question 37

___of a decision is the value of the next-best alternative, or what you give up by choosing one alternative over another

Answer 37

opportunity costs

Question 38

The practice of examining the costs and the expected benefits of a choice as an aid to decision making is called ___

Answer 38

cost-benefit analysis

Question 39

___is one of the most useful tools for individuals when they need to evaluate to relative worth of economics choices

Answer 39

cost-benefit analysis

Question 40

The simplest application of cost-benefit analysis is the___

Answer 40

decision making grid

Question 41

___shows what you get and what you give up when you make choices

Answer 41

decision making grid

Question 42

The analysis of ___ is central to the study of economics

Answer 42

marginal benefits

Question 43

___ is the additional cost of using one or more unit of product

Answer 43

marginal costs

Question 44

___ is the additional satisfaction from using one or more unit of product

Answer 44

marginal benefit

Question 45

What does PPF mean?

Answer 45

Production Possibilities Frontier

Question 46

___ is a graph used by economists to show the impact of scarcity on an economy

Answer 46

PPF

Question 47

The PPF is based on assumptions that simplify economic interactions 1. ___ are fixed 2. All resources are fully ___ 3. Only two things can be ___ 4. ___ is fixed

Answer 47

resources employed produced technology

Question 48

___ is a Latin phrase used in economics to meaning all other things being held equal or constant

Answer 48

ceteris

Question 49

___ is the condition in which economic resources are being used to produce the maximum amount of goods and services

Answer 49

efficiency

Question 50

___is the condition in which economic resources are not being used to their full potential

Answer 50

Undernaturalization

Question 51

What two things would make the PPF shift outward>

Answer 51

economic growth | technology

Question 52

What two things would make the PPF shift inward?

Answer 52

natural disaster | war/plague