Ch1 :(

Question 1

want

Answer 1

Something that we desire to have

Question 2

resource

Answer 2

Anything that is used ot produce goods or services. For example, a person’s labor may be used to produce computers, TV sets, and a person’s labor is a resource

Question 3

scarcity

Answer 3

The condition in which our wants are greater that the resources available to satisfy them

Question 4

opportunity cost

Answer 4

The most highly valued opportunity or alt given up when a choice is made

Question 5

trade-off

Answer 5

A situation in which having more of one thing necessarily means having less of something else

Question 6

production possibilities frontier

Answer 6

A graphic representation of all possible combinations of two goods that an economy can produce

Question 7

rationing device

Answer 7

A means for deciding who gets what portion of the available resources and goods

Question 8

economics

Answer 8

The science that studies the choices of people trying to satisf their wants in a world of scarcity