Chapter 1 Study Guide Flashcards
The situation in which some necessities have little value while some non-necessities have a much higher value is known as _____
Paradox of Value
Manufactured goods needed to produce other goods and services are called _____
Capital Goods
To arrive at an economic decision, a decision-making grid may be used to evaluate _____
Alternative Choice of Action
Division of labor is a characteristic of _____
Assembly Line Production
The study of economics is important because it enables us to _____
Become Better Decision Makers
The dollar value of all final goods and services and the most comprehensive measure of a country’s total production output is _____
Gross Domestic Product (GDP)
A popular model used to illustrate the concept of opportunity cost is _____
The Production Possibilities Frontier
An economy at its production possibilities frontier is operating _____
At Full Potential
The money used to buy the tools and equipment needed for production is known as _____
Financial Capital
Actions in one part of the country or world that have an economic impact on what happens elsewhere are examples of _____
Economic Interdependence
_____ describes the concept that everything we do has a cost
TINSTAAFL
WHAT, HOW, and FOR WHOM to _____ are the three basic economic questions
Produce
The _____ include land, labor, capital, and entrepreneurs
Factors of Production
_____ is a key measure of a nation’s economic health
Gross Domestic Product
The study of _____ helps all of us to become more informed citizens and better decision makers
Economics
A _____ grid can be used to evaluate alternatives
Decision-Making
The opportunity cost of doing something is the next best alternative, or _____, that you give up
Trade-off
A production possibilities frontier shows the various possible combinations of output than can be produced when all _____ are fully employed
Resources
When economic growth takes place, the _____ shifts outward, showing that more products are produced than before
Production Possibilities Frontier
The study of economics helps people make better _____
Decisions
_____ is worth that can be expressed in dollars and cents
Value
_____ is the study of how people try to satisfy their needs and wants through the use of limited resources
Economics
_____ are the tools, equipment, machinery, and factories used in the production of goods and services
Capital
_____ is the condition of not having enough resources to produce all the things people want
Scarcity