ECON LESSON 1

Question 1

anything that gives a person utility

Answer 1

Good

Question 2

the satisfaction one receives from a good.

Answer 2

Utility

Question 3

something that gives a person disutility

Answer 3

Bad

Question 4

the dissatisfaction one receives from a bad.

Answer 4

Disutility

Question 5

this is needed to produce goods, sometimes referred to as
inputs or factor of production

Answer 5

Resource

Question 6

General Categories of Resources:

Answer 6

Land
labor
capital
Entrepreneurship

Question 7

includes natural resources

Answer 7

Land

Question 8

physical and mental talents contributed by people

Answer 8

Labor

Question 9

produced goods that can be used as further input

Answer 9

Capital

Question 10

the talent that some people have for organizing
the resources of land, labor, and capital for production

Answer 10

Entrepreneurship

Question 11

condition in which our wants (for goods) are greater than
the limited resources available to satisfy those who want

Answer 11

Scarcity

Question 12

Our wants are finite, but our resources are infinite TRUE OR FALSE

Answer 12

FALSE

Question 13

If scarcity didn’t exist, neither would economics.TRUE OR FALSE

Answer 13

TRUE

Question 14

the science of how individuals and societies deal with
the fact that wants are greater than the limited resources available to
satisfy those wants

Answer 14

Economics

Question 15

The science of scarcity

Answer 15

Economics

Question 16

A country may be rich or poor not because of the level of available resources, but how it deals with the infinite scarcity. TRUE OR FALSE

Answer 16

TRUE

Question 17

One country does function under the same economic and political systems
compared to others.TRUE OR FALSE

Answer 17

FALSE

Question 18

a means of deciding who gets what of available
resources and goods (example, putting a price on goods/resources).

Answer 18

rationing device

Question 19

If resources were not enough, people
would not have to compete for limited available resources. TRUE OR FALSE

Answer 19

FALSE

Question 20

The most highly valued opportunity or alternative forfeited when we
make a choice is known as

Answer 20

Opportunity Cost

Question 21

a change in opportunity cost can change a
person’s behavior. TRUE OR FALSE

Answer 21

TRUE

Question 22

The lower the opportunity cost of doing something, the less likely it
will be done. TRUE OR FALSE

Answer 22

FALSE

Question 23

additional benefits; the benefits connected with
consuming an additional unit of a good or undertaking one more unit
of an activity

Answer 23

Marginal Benefits

Question 24

additional costs; the costs connected with
consuming an additional unit of a good or undertaking one more unit
of an activity.

Answer 24

Marginal Costs

Question 25

the condition when marginal benefits equal marginal
costs. The right amount of anything is the efficient amount.

Answer 25

Efficiency

Question 26

something that encourages or motivates a person to
undertake an action

Answer 26

incentive

Question 27

is the giving up of one thing for something else.

Answer 27

Exchange, or trade

Question 28

This deals with cause-effect relationships that can be tested

Answer 28

Positive economics

Question 29

This deals with value judgements and opinions that cannot be tested

Answer 29

Normative economics

Question 30

is the branch of economics that deals with human
behavior and choices as they relate to relatively small units. (it deals with behavior of an individual, a firm, an industry, or a single market)

Answer 30

Microeconomics

Question 31

is the branch of economics that deals with human
behavior and choices as they relate to the entire economy (inflation, unemployment rate, changes interest rates,
government spending, and taxes)

Answer 31

Macroeconomics

Question 32

A Latin term meaning “all other things constant” or “nothing else
changes”

Answer 32

ceteris paribus