Chapter1

Question 0

Scarcity

Answer 0

Limited quantities of resources that meet unlimited wants

Question 1

Economics

Answer 1

Study of how people seek to satisfy their needs and wants

Question 2

Shortage

Answer 2

Situation in which a good or service is unavailable

Temporary

Question 3

Factors of production

Answer 3

1- land: natural resources that are used to make goods and services
2-labor:effort that people put on a task
3- capital: human: knowledge and skills someone get through experience
Physical: all human made goods that are used to produce goods and services

Question 4

Trade-off

Answer 4

An alternative that we sacrifice when making a decision

Individuals, business and society make trade-off

Question 5

Opportunity cost

Answer 5

Second best choice

Question 6

Decision making grid

Answer 6

Alternatives: #1/#2

Benefits
Decision
Opp.cost
Lost benefits

Question 7

Thinking of the margin

Answer 7

Deciding whether to do or use one additional unit of some resource

Question 8

Production possibilities curve

Answer 8

A graph that shows alternative ways to use an economy’s resources

Question 9

Production possibilities frontier

Answer 9

The line on a production possibilities graph that shows the maximum possible output

Question 10

Efficiency

Answer 10

Using resources in such a way to maximize the production of goods and services

Question 11

Underutilization

Answer 11

Using fewer resources than an economy resources than an economy is capable of using