ECO 2023 -- Exam 1 Study Guide || with 100% Error-free Answers.

What is economics about? correct answers scarcity and the choices we have to make because our desire for goods and services is far greater than their availability scarcity correct answers occurs whenever there is less of a good/resource freely available than people would like choice correct answers the act of selecting among alternatives resources correct answers ingredients, or inputs, that people use to produce goods and services what are the three general categories of resources? correct answers human, physical, and natural what is an example of a human resource (aka capital)? correct answers productive knowledge and skill what is an example of a physical resource? correct answers tools, machines, and buildings for production what is an example of a natural resource? correct answers land, mineral deposits, oceans, and rivers rationing correct answers allocating a limited supply of a good or resource among people who would like to have more of it economic way of thinking correct answers a set of definitions, postulates, and principles assembled in a manner that makes clear the "cause-and-effect" relationships opportunity cost correct answers the highest-valued alternative that must be sacrificed in order to get something else economizing behavior correct answers choosing the option that offers the greatest benefit at the least possible cost Utility correct answers the subjective value or satisfaction a person expects from a choice or course of action marginal correct answers describes the effect of a change in the current situation secondary effects correct answers The indirect impact of an event or policy that may not be easily and immediately observable. In the area of policy, these effects are often both unintended and overlooked.