Chapter 1

Question 1

economics

Answer 1

how people use “scarce” and “limited” resources to satisfy wants and needs.

Question 2

need

Answer 2

basic requirement for survival.

Question 3

want

Answer 3

a way of expressing a need.

Question 4

scarcity

Answer 4

limited in quantity, desired, multi useful.

Question 5

utility

Answer 5

amount of usefulness or satisfaction we get from something.

Question 6

marginal utility

Answer 6

extra amount of enjoyment we attain from something.

Question 7

diminishing utility

Answer 7

as consumers we appreciate something less and less as we attain more.

Question 8

TINSTAAFL

Answer 8

there is no such thing as a free lunch.

Question 9

opportunity cost

Answer 9

cost of “next best” alternative use of money, time, or resources.

Question 10

microeconomics

Answer 10

studying decision making of small groups or individual.

Question 11

macroeconomics

Answer 11

studying decision making of large groups or population..

Question 12

three basic questions for communities/nations

Answer 12

what to produce, how to produce, for whom to produce

Question 13

four categories of factors of production

Answer 13

land, labor, capital, entrepreneurs

Question 14

land

Answer 14

gifts of nature

Question 15

labor

Answer 15

workers and their skills

Question 16

capital

Answer 16

the tools, machines, equipment, and factories used to produce good and services.

Question 17

entrepreneurs

Answer 17

risk takers who start businesses

Question 18

good

Answer 18

economic product that is tangible and satisfies a want or need.

Question 19

service

Answer 19

work performed for structure

Question 20

consumer

Answer 20

ones who buy goods and services

Question 21

value

Answer 21

monetary expression of an item in money

Question 22

how to determine value

Answer 22

scarcity and how much item is desired

Question 23

capital goods

Answer 23

things that can be used to make consumer goods

Question 24

consumer goods

Answer 24

stuff you buy to use for yourself

Question 25

durable goods

Answer 25

items that last three years or more

Question 26

non durable goods

Answer 26

items that last less than three years

Question 27

wealth

Answer 27

accumulation of products that are tangible, scarce, useful

and transferable from one person to another.

Question 28

comparative advantage

Answer 28

the ability to produce something at a lower opportunity cost than other products.

Question 29

law of comparative advantage

Answer 29

an individual firm, or region with the lowest opportunity cost of producing a good or should specialize in that good.

Question 30

absolute advantage

Answer 30

ability to produce something using fewer resources than other producers.