ECONOMICS MIDTERM REVIEW
EXAM WITH 100% CORRECT
ANSWERS
Economics - CORRECT ANSWER✔✔the study of how indidivudals and societies make choices
about ways to use scarces resources to fulfill their wants.
Want - CORRECT ANSWER✔✔everything other than basic survival needs.
Scarcity - CORRECT ANSWER✔✔condition of not being able to have all of the goods and
services one wants, because wants exceed what can be made from all available resources at any
given time.
Factors of production - CORRECT ANSWER✔✔resources of land, labor, and entrepreneurship
used tp produce goods and services.
land - CORRECT ANSWER✔✔(factor of production)-natural resources and surface land and
water
labor - CORRECT ANSWER✔✔(factor of production)-human effort directed toward producing
goods and services
goods - CORRECT ANSWER✔✔tangible objects that can satisfy people's wants or needs
services - CORRECT ANSWER✔✔actions that can satisfy people's wants or needs
, capital - CORRECT ANSWER✔✔(factor of production)-previously manufactured goods used to
make other goods and services.
productivity - CORRECT ANSWER✔✔the amount of output (goods and services) that results
from a given level of inputs (land, labor, capital, entrepreneurship
entrepreneurship - CORRECT ANSWER✔✔(factor of reproduction)-ability of risk taking
individuals to develop new products and start new businesses in order to make profits.
technology - CORRECT ANSWER✔✔(some consider to be factor of production)-advance in
knowledge leading to new and improved goods and services and better ways of producing
them.
trade-off - CORRECT ANSWER✔✔sacrifcing one good or service to purchase or produce another.
opportunity cost - CORRECT ANSWER✔✔value of the next best alternative given up for the
alternative that was chosen
production possibilities curve - CORRECT ANSWER✔✔graph showing the maximum
combinations of goods and services that can be produced from a fixed amount of resources in a
given period of time.
microeconomics - CORRECT ANSWER✔✔the branch of economic theory that deals with
behavior and decision making by small units such as individuals and firms.
macroeconomics - CORRECT ANSWER✔✔the branch of economic theory dealing with the
economy as a whole and decision making by large units such as governments
economy - CORRECT ANSWER✔✔the production and distribution of goods and services in a
society.
EXAM WITH 100% CORRECT
ANSWERS
Economics - CORRECT ANSWER✔✔the study of how indidivudals and societies make choices
about ways to use scarces resources to fulfill their wants.
Want - CORRECT ANSWER✔✔everything other than basic survival needs.
Scarcity - CORRECT ANSWER✔✔condition of not being able to have all of the goods and
services one wants, because wants exceed what can be made from all available resources at any
given time.
Factors of production - CORRECT ANSWER✔✔resources of land, labor, and entrepreneurship
used tp produce goods and services.
land - CORRECT ANSWER✔✔(factor of production)-natural resources and surface land and
water
labor - CORRECT ANSWER✔✔(factor of production)-human effort directed toward producing
goods and services
goods - CORRECT ANSWER✔✔tangible objects that can satisfy people's wants or needs
services - CORRECT ANSWER✔✔actions that can satisfy people's wants or needs
, capital - CORRECT ANSWER✔✔(factor of production)-previously manufactured goods used to
make other goods and services.
productivity - CORRECT ANSWER✔✔the amount of output (goods and services) that results
from a given level of inputs (land, labor, capital, entrepreneurship
entrepreneurship - CORRECT ANSWER✔✔(factor of reproduction)-ability of risk taking
individuals to develop new products and start new businesses in order to make profits.
technology - CORRECT ANSWER✔✔(some consider to be factor of production)-advance in
knowledge leading to new and improved goods and services and better ways of producing
them.
trade-off - CORRECT ANSWER✔✔sacrifcing one good or service to purchase or produce another.
opportunity cost - CORRECT ANSWER✔✔value of the next best alternative given up for the
alternative that was chosen
production possibilities curve - CORRECT ANSWER✔✔graph showing the maximum
combinations of goods and services that can be produced from a fixed amount of resources in a
given period of time.
microeconomics - CORRECT ANSWER✔✔the branch of economic theory that deals with
behavior and decision making by small units such as individuals and firms.
macroeconomics - CORRECT ANSWER✔✔the branch of economic theory dealing with the
economy as a whole and decision making by large units such as governments
economy - CORRECT ANSWER✔✔the production and distribution of goods and services in a
society.
