Chapter 1 Review

Question 1

The 4 resources

Answer 1

Capital, Natural, Human, and Entrepreneurship

Question 2

Scarcity is based on

Answer 2

Choices

Question 3

What makes up scarcity

Answer 3

Unlimited wants, limited resources

Question 4

3 forms of exchange

Answer 4

Barter, money, credit

Question 5

2 assumptions of PPC

Answer 5

1. ) The amount of resources and technology will not change during the period being studied
2. ) all natural, human, and capital resources are being used in the most efficient manner possible

Question 6

3 functions of money

Answer 6

1. ) standardized item that is traded for goods
2. ) measure of value
3. ) has value that can be saved to purchase items later

Question 7

What is value determined by?

Answer 7

The utility or scarcity of it