1.2.1.2

Question 1

includes
the “gifts of
nature,” or
natural resources
not created by
human effort.

Answer 1

Land

Question 2

includes
the tools,
equipment, and
factories used in
production.

Answer 2

Capital

Question 3

includes
people with all
their efforts and
abilities.

Answer 3

Labor

Question 4

are individuals
who start a new
business or bring
a product to
market.

Answer 4

Entrepreneur

Question 5

Factors of production

Answer 5

Land, Labor, Capital, Entrepreneur

Question 6

Payment for Land

Answer 6

Rent

Question 7

Payment for Labor

Answer 7

Wages/Salaries

Question 8

Payment for Capital

Answer 8

Interest

Question 9

Payment for Entrepreneurs

Answer 9

Profit

Question 10

An economic system
cannot produce all goods
and services that
consumers, and most
consumers do not have the
resources to purchase
everything they want.

Answer 10

Law of scarcity

Question 11

Choices must be made
about how limited
resources (time,
money) are used.

Answer 11

Law of Scarcity

Question 12

Doing things right

Answer 12

Efficiency

Question 13

Doing the right things

Answer 13

Effectiveness

Question 14

how a
resource is
assigned or
distributed.

Answer 14

Allocation

Question 15

how
resources are used
after allocation.

Answer 15

Utilization

Question 16

refers to what
a person could have done with
what was sacrificed.

Answer 16

Opportunity Cost

Question 17

Refers the next valuable
opportunity

Answer 17

Opportunity Cost

Question 18

describes what is
sacrificed to get something else.

Answer 18

Trade-off

Question 19

Refers to two opportunities or
more with choice.

Answer 19

Trade-off

Question 20

the basic requirements for survival. Things we must have in order to survive.

Answer 20

Needs

Question 21

not absolutely or necessarily essential for survival. Things we don’t really need but would like to have.

Answer 21

Wants

Question 22

Any commodity or anything which can satisfy our wants

Answer 22

Goods

Question 23

For family

Answer 23

Household economics

Question 24

Work

Answer 24

Business economics

Question 25

Whole nation

Answer 25

National Economics

Question 26

Involving other countries

Answer 26

International economics

Question 27

Is a science because it is an organized body of truth, coordinated, arranged and systematized with reference to certain general laws and principles.

Answer 27

Economics as a science

Question 28

countless in number and various in kind.

Answer 28

Human wants

Question 29

unlimited, satiable, recurring, complementary, competitive, complementary and competitive, vary in urgency, and vary according to person, place and time.

Answer 29

Features of human wants

Question 30

necessaries, comforts and luxuries

Answer 30

Classification of wants

Question 31

tangible and intangible, free and economic

Answer 31

Goods

Question 32

scarcity of resources is the root cause of all economic problems

Answer 32

Resources