what is economics

Question 1

Scarcity

Answer 1

Unlimited wants, limited resources

Question 2

Land

Answer 2

natural resources used to produce goods & services

Question 3

Labor

Answer 3

human effort used to produce goods & services

Question 4

Capital

Answer 4

assets used to produce goods & services

Question 5

Entrepreneurship

Answer 5

person who combines all factors of production to create goods & services

Question 6

Human capital

Answer 6

knowledge/skill gained by worker through education/experience

Question 7

Physical capital

Answer 7

goods used to create other goods & services

Question 8

Command economy

Answer 8

government controls production and output level

Question 9

Market economy

Answer 9

individuals/businesses make choices

Question 10

Role of property rights in market economy

Answer 10

defines who gets to own resources and how it’s used

Question 11

explicit cost

Answer 11

money payed for a choice

Question 12

implicit cost

Answer 12

lost earnings from a choice

Question 13

opportunity cost

Answer 13

value of best alternative not chosen
implicit + explicit

Question 14

shifters of PPC

Answer 14

quality / quantity

Question 15

absolute advantage

Answer 15

ability to produce more with fixed resources/ produce same amount using fewer resources

Question 16

comparative advantage

Answer 16

ability to produce at a lower opportunity cost

Question 17

law of demand

Answer 17

as price goes up, quantity demanded goes down

Question 18

shifters of demand