Ch-1

Question 0

Want

Answer 0

An item that we desire but that is not essential to survival

Question 1

Need

Answer 1

Something like air, food, or shelter

Question 2

Economics

Answer 2

The study of how people seek to satisfy their needs and wants by making choices

Question 3

Goods

Answer 3

Physical objects such as clothes or shoes

Question 4

Services

Answer 4

Actions or activities one person performs for another

Question 5

Scarcity

Answer 5

Limited quantities of resources to meet unlimited wants

Question 6

Shortage

Answer 6

A situation in which a good or service is unavailable

Question 7

Factors of production

Answer 7

Land, labor, or capital; the three groups of resources that are used to make all good and services

Question 8

Labor

Answer 8

The effort that people devote to a task for which they are paid

Question 9

Capital

Answer 9

Any human-made resource that is sued to create other goods or services

Question 10

Entrepreneur

Answer 10

Ambitious leader who combines land, labor, and capital to create and market new goods or services

Question 11

Underutilization

Answer 11

Using fewer resources than an economy is capable of using

Question 12

Low of increasing costs

Answer 12

As we shift factors of production from making one good or service to another, the cost of producing the second item increases