Chapter 2 Production Alt

Question 1

Giving up something to get something we value more is an example of what?

Answer 1

Costs and benefits

Question 2

Choosing a particular thing, a person loses a chance to choose something else is an example of?

Answer 2

Opportunity costs

Question 3

Land, labor, capital, and entrepreneurship are what?

Answer 3

Productive resources

Question 4

The use of people and their work to add value to a product is?

Answer 4

Labor

Question 5

All the natural resources in a nation as well as the air above is considered what?

Answer 5

Land

Question 6

Human produced resources such as tools, machinery, and software is called what?

Answer 6

Capital

Question 7

Someone directing the production and makes critical decisions about resources to use is the what?

Answer 7

Entrepreneurship

Question 8

A nation can blend four productive resources in a multitude of ways to produce a multitude of products is considered what?

Answer 8

Production possibilities

Question 9

The more a business increases production on a single output, the smaller will be the additional gain for a given input is considered what?

Answer 9

Law of diminishing returns

Question 10

When a given resource is relatively better at the production of one good or service it’s considered a what?

Answer 10

Specialization