basic term to understand economics

Question 1

which yields to your
satisfaction. It is anything used
to satisfy your wants and
needs

Answer 1

goods

Question 2

goods for the ultimate consumption of the consumers

Answer 2

consumer goods

Question 3

used in the production of other goods and services

Answer 3

capital goods or industrial goods

Question 4

used to satisfy the basic needs of man

Answer 4

essential goods

Question 5

goods man may do without, but may give comfort and satisfaction

Answer 5

luxury goods

Question 6

goods which are useful and scarce

Answer 6

economic goods

Question 7

Is the foundation of consumer buying behavior and
demand for goods.

Answer 7

utility

Question 8

Is the additional utility or satisfaction from the
consumption of an additional unit of good, keeping
other things constant.

Answer 8

marginal utility

Question 9

Total utility is the aggregate amount of satisfaction or fulfillment that a consumer
receives through the consumption of a specific
good or service

Answer 9

total utility

Question 10

can also help analysts determine
how to distribute goods and services to consumers
in a way that total utility is realized

Answer 10

utility function

Question 11

factual and objective

Answer 11

positive economics

Question 12

based on opinions and is subjective

Answer 12

normative economics

Question 13

increase in the ability to produce goods and services.
This means that producers are able to produce more.

Answer 13

economic growth

Question 14

produces at minimum
cost

Answer 14

productive efficiency

Question 15

uses existing resources to
maximize society’s satisfaction and reduce scarcity

Answer 15

allocation efficiency

Question 16

If we have full employment,
we produce more. It reduces scarcity and helps achieve the maximum satisfaction possible.

Answer 16

full employment

Question 17

fair distribution of income or goods and services

Answer 17

equity