Chapter 1- Section 1

Question 0

The study of how people try to satisfy what appears to be seemingly unlimited and comparing wants through the careful use of relatively scarce resources

Answer 0

Economics

Question 1

Fundamental economic problem facing all societies; condition that results from society not having enough resources to produce all the things people would like to have

Answer 1

Scarcity

Question 2

A basic requirement for survival and includes food, clothing, and shelter

Answer 2

Need

Question 3

A way of expressing a need ex: food- may decide to have pizza instead of chicken

Answer 3

Want

Question 4

The term want is broader than the term need. True or false?

Answer 4

True

Question 5

There is No such thing as a free lunch. Why?

Answer 5

People still have to be paid for what they produce. Someone always have to pay

Question 6

What are the three basic questions?

Answer 6

WHAT to produce, HOW to produce, and FOR WHOM to produce

Question 7

A society cannot have everything it’s people want

Answer 7

WHAT to produce

Question 8

Mass production method (lots of machinery and few workers) or less equipment and more workers

Answer 8

HOW to produce

Question 9

Not enough made for everyone

Answer 9

FOR WHOM to produce

Question 10

Resources required to produce the things we would like to have, are land, capital, labor, and entrepreneurs

Answer 10

Factors of production

Question 11

Refers to the “gifts of nature” or natural resources not created by humans

Answer 11

Land

Question 12

The tools, equipment, machinery, an factories used in the production of goods and services

Answer 12

Capital

Question 13

The money used to buy the tools and equipment in production

Answer 13

Financial capital

Question 14

People with all their efforts, abilities, and skills

Answer 14

Labor

Question 15

Risk-taker in search of profits who does something new with existing resources

Answer 15

Entrepreneurs

Question 16

Entrepreneurs are thought of as being the ________ in an economy because they exhibit the ability to start new businesses or bring new products to the market

Answer 16

Driving force

Question 17

Process of creating goods and services; when land, capital, labor, and entrepreneurs are all present

Answer 17

Production

Question 18

Economics is a what because it deals with the behavior of people as they deal with the basic issue?

Answer 18

Social science

Question 19

What are for elements to the study of economics?

Answer 19

Description, analysis, explanation, and prediction

Question 20

The dollar value of all final goods and services, and structures produced within a country’s borders in a 12-month period

Answer 20

Gross Domestic Product (GDP)

Question 21

Description is important why?

Answer 21

We need to know what the world around us looks like

Question 22

Analysis is important why?

Answer 22

To discover why things work and how things happen

Question 23

Explanation is important why?

Answer 23

If we understand how the economy works, some economic problems will be much easier to address or even fix in the future

Question 24

Prediction is important why?

Answer 24

To make the best decision in situations; the study if economics helps all of us to become more informed citizens and better decision makers