chap 1

Question 1

opportunity cost

Answer 1

is the value of something that is given up to get something else that is wanted

Question 2

capital

Answer 2

tools, machinery, and factories are examples

Question 3

economics

Answer 3

the study of how people chose to use scarce resources to satisfy their needs and wants

Question 4

utility

Answer 4

benefit or satisfaction gained from the use of a good or service

Question 5

needs

Answer 5

examples are food, water, clothing, and shelter

Question 6

marginal cost

Answer 6

the additional cost of using one more unit of a product

Question 7

producer

Answer 7

person who makes goods or provides services

Question 8

entrepreneurship

Answer 8

combines vision, skill, ingenuity and willing to take risks needed for business

Question 9

efficiency

Answer 9

producing the maximum amount of goods and services possible

Question 10

PPC

Answer 10

abbreviation for the production possibilities curve

Question 11

goods

Answer 11

physical objects are examples of these

Question 12

service

Answer 12

work performed for another for payment

Question 13

wants

Answer 13

desires that can be satisfied by consuming a good or service