Chapter 1

Question 1

Need

Answer 1

Something like air, food, or shelter (necessary for survival)

Question 2

Want

Answer 2

Desired but not essential to survival

Question 3

Economics

Answer 3

Study on how people seek to satisfy needs and wants by choice

Question 4

Goods

Answer 4

Physical objects (clothes or shoes)

Question 5

Services

Answer 5

Actions and activities that one performs for another

Question 6

Scarcity

Answer 6

Limited quantities of resources to meet unlimited wants

Question 7

Shortage

Answer 7

Good or service in unavailable

Question 8

Factors of production

Answer 8

land, labor, and capital; make all goods and services

Question 9

Land

Answer 9

Natural resources used to make goods and services

Question 10

Labor

Answer 10

Effort people devote to a task; paid

Question 11

Capital

Answer 11

Human made RESOURCES used to create other goods and services

Question 12

Physical capital

Answer 12

Human made GOODS used to create other goods and services (tools, buildings)

Question 13

Human capital

Answer 13

Skills and knowledge gained by a worker through education and experience

Question 14

Entrepreneur

Answer 14

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