Unit 1

Question 1

Want

Answer 1

Desires that can be satisfied by consuming a good or service

Question 2

Need

Answer 2

Things such as food clothing and shelter that are needed to survive

Question 3

Scarcity

Answer 3

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

Question 4

Economics

Answer 4

Study of how people choose to use scarce resources to satisfy their wants

Question 5

Goods

Answer 5

Physical objects that can be purchased such as food clothing and furniture

Question 6

Services

Answer 6

Work that one person performs for another for payment

Question 7

Consumer

Answer 7

A person who buys goods or services for personal use

Question 8

Producer

Answer 8

A person who makes goods or provides services

Question 9

Factors of production

Answer 9

Economic resources needed to provide goods and services

Question 10

Land

Answer 10

All the natural resources found on or underground that are used to produce goods and services

Question 11

Labor

Answer 11

Do you mean time effort and talent that go into the making of products

Question 12

Capital

Answer 12

All the resources made and use my people to produce and distribute goods and services

Question 13

Physical capital

Answer 13

Resources made and used by people to produce goods and services

Question 14

Human capital

Answer 14

The knowledge and skills gained through experience

Question 15

Entrepreneur

Answer 15

Combination of vision skill in ingenuity and willingness to take risks that is needed to create and run a business

Question 16

Trade off

Answer 16

The alternative someone gives up when making an economic choice

Question 17

Opportunity cost

Answer 17

The value of something that is given of my choosing an alternative over another

Question 18

Cost benefit analysis

Answer 18

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

Question 19

Marginal cost

Answer 19

Additional cost of producing are using one or more unit of a good or service

Question 20

Marginal benefit

Answer 20

The benefit or satisfaction gain from using one or more unit of a good or service

Question 21

Production possibilities curve

Answer 21

Graph used to illustrate the impact of scarcity on an economy

Question 22

Efficiency

Answer 22

The condition in which economic resources are used to produce the maximum amount of goods

Question 23

Underutilization

Answer 23

Condition in which I cannot make resources are not being used for their full potential resulting in fewer goods and services

Question 24

Law of increasing opportunity cost

Answer 24

States that as production switches from one product to another increasingly more resources are needed to increase the production of the second product which causes opportunity cost to rise