Chapter 2

Question 1

Scarcity

Answer 1

limited resources up against unlimited human wants

Question 2

Resources (factors of production)

Answer 2

Land, Labor, physical capital, entrepreneurship

Question 3

Land

Answer 3

natural resources, gifts of nature (ex. timber, water, fish, materials)

Question 4

Labor

Answer 4

human resources and contributions (Ex. doctors, lawyers, electricians)

Question 5

Physical Capital

Answer 5

Manufactured resources (Ex. computers, tools)

Question 6

Entrepreneurship

Answer 6

creative resource (Ex. Jeff Bezos…)

Question 7

Good

Answer 7

Tangible Item

Question 8

Service

Answer 8

Intangible good

Question 9

PPC stand for

Answer 9

Production Possibility Curve

Question 10

When the point is inside the curve

Answer 10

you are not using resources to their fullest extent, not producing enough, inefficient

Question 11

Point outside the curve

Answer 11

currently unattainable

Question 12

Point on the curve

Answer 12

economic efficiency

Question 13

Opportunity Cost

Answer 13

To get more of one good you have to sacrifice something else, next best alternative

Question 14

Economic Growth

Answer 14

Causes the PPC curve to shift in the future to the right, what was unattainable becomes attainable (Ex. Technology)

Question 15

Specialization

Answer 15

becoming proficient in something specific, allows us to get more from our resources

Question 16

Division of Labor

Answer 16

Break down a complex task into specific tasks to get something down more efficiently, output is increased