CHAPTER 1 Economics

Question 1

Scarcity

Answer 1

not having enough resources to produce the things people would like to have

Question 2

Economics

Answer 2

the study of how people try to satisfy their needs through their limited resources

Question 3

Factors of Production

Answer 3

resources required to produce the things we would like to have, are LAND, LABOR, CAPITAL and ENTREPRENEURS

Question 4

Gross Domestic Product

Answer 4

the dollar value of all final goods services and structures produced in a country in a year (GDP)

Question 5

Good

Answer 5

an item that is useful or satisfies an economic want/need

Question 6

Capital Good

Answer 6

good used to MAKE goods and services

Question 7

Utility

Answer 7

the ability to be useful and provide satisfaction

Question 8

Human Capital

Answer 8

how good the skills, abilities, health and motivation of your people are

Question 9

Opportunity Cost

Answer 9

cost of the NEXT best alternative use of money, time or resources

Question 10

Standard of Living

Answer 10

the quality of life based on the possession of the necessities and luxuries that make life easier