ECONOMICS UNIT 1QUESTIONS AND GRADED ANSWERS,
100% GUARANTEE
need - something essential for survival
want - something that we desire but that is not necessary for survival
goods - physical objects that someone produces
services - actions or activities that one person performs for another
scarcity - there are limited amounts of goods and services available to meet unlimited
wants
economics - the study of how people seek to satisfy their needs and wants by making
choices
shortage - occurs when consumers want more of a good or service than producers are
willing to make available at a particular price
entrepreneurs - people who decide how to combine resources to create new goods and
services
factors of production - the resources used to make all goods and services
3 factors of production - land, labor, capital
land - refers to all natural resources used to produce goods and services
, natural resources - natural wealth of a country, consisting of land, forests, mineral
deposits, water, etc.
labor - the effort people devote to tasks for which they are paid
capital - refers to any human-made resource that is used to produce other goods and
services
physical capital - human-made objects used to create other goods and services
capital goods - another term used for physical capital
human capital - knowledge and skills a worker gains through education and experience
productivity - the quality, state, or fact of being able to generate, create, enhance, or bring
forth goods and services
trade-off - the act of giving up one benefit in order to gain another, greater benefit
domestic - of or relating to the home, the household, household affairs, or the family
"guns or butter" - describes one of the common choices facing governments: choice
between spending money on military or domestic needs
opportunity cost - most desirable alternative somebody gives up as the result of a decision
decision-making grid - helps to determine whether you are willing to accept the
opportunity cost of a choice you are about to make
100% GUARANTEE
need - something essential for survival
want - something that we desire but that is not necessary for survival
goods - physical objects that someone produces
services - actions or activities that one person performs for another
scarcity - there are limited amounts of goods and services available to meet unlimited
wants
economics - the study of how people seek to satisfy their needs and wants by making
choices
shortage - occurs when consumers want more of a good or service than producers are
willing to make available at a particular price
entrepreneurs - people who decide how to combine resources to create new goods and
services
factors of production - the resources used to make all goods and services
3 factors of production - land, labor, capital
land - refers to all natural resources used to produce goods and services
, natural resources - natural wealth of a country, consisting of land, forests, mineral
deposits, water, etc.
labor - the effort people devote to tasks for which they are paid
capital - refers to any human-made resource that is used to produce other goods and
services
physical capital - human-made objects used to create other goods and services
capital goods - another term used for physical capital
human capital - knowledge and skills a worker gains through education and experience
productivity - the quality, state, or fact of being able to generate, create, enhance, or bring
forth goods and services
trade-off - the act of giving up one benefit in order to gain another, greater benefit
domestic - of or relating to the home, the household, household affairs, or the family
"guns or butter" - describes one of the common choices facing governments: choice
between spending money on military or domestic needs
opportunity cost - most desirable alternative somebody gives up as the result of a decision
decision-making grid - helps to determine whether you are willing to accept the
opportunity cost of a choice you are about to make
