Question 1

need

Accepted Answer

something like air, food, or shelter that is necessary for survival

Question 2

want

Accepted Answer

an item that we desire but that is not essential to survival. A luxury.

Question 3

Economics

Accepted Answer

the study of how peoplesatisfy their needs and wants by making choices, the branch of social science that deals with the production and distribution and consumption of goods and services and their management

Question 4

goods

Accepted Answer

physical objects such as clothes or shoes. These can be purchased by consumers.

Question 5

services

Accepted Answer

actions or activities that one person performs for another.

Question 6

scarcity

Accepted Answer

limited quantities of resources to meet unlimited wants. We always want more than we have.

Question 7

shortage

Accepted Answer

a situation in which producers will not or cannot offer goods or services at the current prices.

Question 8

See image

Accepted Answer

resources that are used to make all goods and services.

Question 9

factors of production

Accepted Answer

Land, Labor, Capital and Entrepreneurship

Question 10

land

Accepted Answer

all natural resources that are used to produce goods and services.

Question 11

labor

Accepted Answer

the effort that people devote to a task for which they are paid.

Question 12

capital

Accepted Answer

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

Question 13

physical capital

Accepted Answer

the human-made objects used to create other goods and services. examples: Tools, buildings and machines.

Question 14

human capital

Accepted Answer

the knowledge and skills a worker gains through education and experience. The need for human capital increases when technology becomes more sophisticated.

Question 15

entrepreneur

Accepted Answer

ambitious leader who decide how to combine land, labor, and capital to create and market new goods and services.

Question 16

trade-off

Accepted Answer

all alternatives that must be given up when we choose one course of action over another

Question 17

guns or butter

Accepted Answer

a phrase that refers to the trade-offs that nations face when choosing whether to produce more or less military or consumer goods

Question 18

opportunity cost

Accepted Answer

the most desirable alternative given up as the result of a decision

Question 19

thinking at the margin

Accepted Answer

when you decide how much more or less to do

Question 20

production possibility curve

Accepted Answer

A graph that shows alternative ways to use an economy's productive resources

Question 21

production possibilities frontier

Accepted Answer

the line on a production possibilities graph that shows the maximum possible output an economy can produce

Question 22

efficiency

Accepted Answer

using resources in such a way as to maximize the production (output) of goods and services

Question 23

underutilization

Accepted Answer

using fewer resources than an economy is capable of using

Question 24

cost

Accepted Answer

to an economist, the alternative that is given up because of a decision

Question 25

law of increasing costs

Accepted Answer

As we shift factors of production from making one good or service to another, the cost of producing the second item increases

Question 26

GDP = Gross Domestic Product

Accepted Answer

The dollar value of all final goods and services produced within a country's borders in a given year.

Question 27

free enterprise economy

Accepted Answer

an economic system characterized by private or corporate ownership of capital goods.

Question 28

Cost/Benefit Analysis

Accepted Answer

A decision making process in which you compare what you will sacrifice and gain by a specific action

Question 29

Marginal Cost

Accepted Answer

the extra cost of adding one unit

Question 30

Marginal Benefit

Accepted Answer

the extra benefit of adding one unit.

Related quizzes

Related quizzes