Chapter 1

Question 0

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

Answer 0

Want

Question 1

Something like air, food, or shelter

Answer 1

Need

Question 2

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

Answer 2

Economics

Question 3

Physical objects such as clothes or shoes

Answer 3

Goods

Question 4

Actions or activities one person performs for another

Answer 4

Services

Question 5

Limited quantities of resources to meet unlimited wants

Answer 5

Scarcity

Question 6

A situation in which a good or service is unavailable

Answer 6

Shortage

Question 7

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

Answer 7

Factors of Production

Question 8

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

Answer 8

Labor

Question 9

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

Answer 9

Capital

Question 10

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

Answer 10

Entrepreneur

Question 11

Using fewer resources than an economy is capable of using

Answer 11

Underutilization

Question 12

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

Answer 12

Law of Increasing Costs