ECON Lesson 1

Question 1

The study of how individuals, governments, businesses and other organizations make choices that effect the allocation and distribution of scarce resources.

Answer 1

Economics

Question 2

Refers to the limitation of resources particularly economic resources.

Answer 2

Scarcity

Question 3

True or False

No scarcity = No economics

Answer 3

True

Question 4

True or False

Human wants are limitless

Answer 4

True

Question 5

True or False

Resources are unlimited

Answer 5

False

Question 6

True or False

A person’s Needs are unlimited and their Wants limited

Answer 6

False

Question 7

True or False

Through time, wants become needs, such as phones.

Answer 7

True

Question 8

The basic economic problem we all face.

Answer 8

Scarcity

Question 9

What are the 3 Fundamental questions in Economics?

Answer 9

• For whom to produce?
• What to produce?
• How to produce?

Question 10

Fundamental questions of Economics

Is the question that asks what kinds of goods and services should be produced.

Answer 10

What to produce?

Question 11

Fundamental questions of Economics

Is the question that asks what productive resources are used to produce goods and services.

Answer 11

How to produce?

Question 12

Fundamental questions of Economics

Is the question that asks who gets to have the goods and services.

Answer 12

For whom to produce?

Question 13

Refers to the assumption that individuals and firms make decisions based on logic and self-interest, aiming to maximize their utility (for consumers) or profit (for firms).

Answer 13

Rationality

Question 14

Involves selecting the best possible choice among alternatives given limited resources.

Answer 14

Decision-making

Question 15

What are the 6 steps to create a rational decision?

Answer 15

1. Recognize a decision problem
2. Define the goals or objectives
3. Collect all the relevant information
4. Identify a set of deasible decision alternatives
5. Select the decision criterion to use
6. Select the best alternative

Question 16

Refers to what a person could have done with what was sacrificed.

Answer 16

Oppotunity Cost

Question 17

Refers the next valuable opportunity

Answer 17

Opportunity Cost

Question 18

Describes what is scarficed to get something else.

Answer 18

Trade Off

Question 19

Refers to two opportunities or more with choice

Answer 19

Trade Off

Question 20

It involves both implicit and explicit costs.

Answer 20

Opportunity Cost

Question 21

Are the direct, out-of-pocket expenses or the time and money it would take to choose an option.

Answer 21

Explicit Cost

Question 22

Typically happiness or satistfaction with the decision rather than a tangible effeect on you or a company.

Answer 22

Implicit Cost

Question 23

Whhat are the 4 Types of Economic Resources

Answer 23

• Natural Resources
• Human Resources
• Capital Resources
• Entrepreneurial Resources

Question 24

Types of Economic Resources

Raw materials found in nature

Answer 24

Natural Resources

Question 25

# Types of Economic Resources People's knowledge, efforts and skills used in their work.

Answer 25

Human Resources

Question 26

# Types of Economic Resources Used to produce goods and services Equipment, land, and electricity

Answer 26

Capital Resources

Question 27

# Types of Economic Resources The ability to recognize needs and organize resources to meet them.

Answer 27

Entrepreneurial Resources

Question 28

What are the 4 Types of Economic Systems?

Answer 28

- Traditional Economy - Command Economy - Makret Economy - Mixed Economy

Question 29

# Types of Economic Systems Who decides what to produce? * People follow their customs and make what their ancestors made. Who decides how to produce goods and services? * People grow and make things the same way that their ancestors did. Who are the goods and services produced for? * People in the village who need them.

Answer 29

Traditional Economy

Question 30

# Types of Economic Systems Who decides what to produce? * Government makes all economic decisions. Who decides how to produce goods and services? * Government decides how to make good/services Who are the goods and services produced for? * Whoever the government decides to give them to.

Answer 30

Command Economy

Question 31

# Types of Economic Systems Who decides what to produce? * Businesses base decisions on supply and demand and free enterprise (PRICE) Who decides how to produce goods and services? * Businesses decide how to produce goods. Who are the goods and services produced for? * Consumers

Answer 31

Market Economy

Question 32

# Types of Economic Systems Market + Command = Mixed * Businesses own most resources and determine what and how to produce, but the government regulates certain industries. * These are no pure command or market economies. * To some degree, all modern economies exhibit characteristics of both systems and are often rendered as mixed economies. * Most economies are closer to one type of economic system than another. * Government regulates

Answer 32

Mixed Economy

Question 33

Who decides what to produce? * Businesses Who decides how to produce goods and services? * Businesses but the government regulates certain industries Who are the goods and services produced for? * Consumers.

Answer 33

Mixed Economy

Question 34

# True or False The study of economics and applied economics deal with understanding basic terms which is essential in the analysis of economic activity. The end product of the use of the factors of production is known as goods and services which is referring to anything that satisfies human wants and needs.

Answer 34

True

Question 35

This is economic theories being applied.

Answer 35

Applied Economics

Question 36

What are the 2 Types of Goods

Answer 36

- Tangible - Intangible

Question 37

# Types of Goods Means products that are of a physical nature, such as clothing or household items

Answer 37

Tangible Goods

Question 38

# Types of Goods Are forms of services rendered by professionals, virtual goods like APP and others.

Answer 38

Intangible Goods

Question 39

What are the 5 Classifcation of Goods According to Use?

Answer 39

- Consumer Goods - Capital Goods - Essential Goods - Economic Goods - Luxury Goods

Question 40

# Classifcation of Goods According to Use Goods for the consumption of consumers

Answer 40

Consumers Goods

Question 41

# Classifcation of Goods According to Use Essential for human consumption used to satisfy basic human needs.

Answer 41

Essential Goods

Question 42

# Classifcation of Goods According to Use Goods that have value and price to be paid for its use and are usually useful and scarce

Answer 42

Economic Goods

Question 43

# Classifcation of Goods According to Use * Used for the production of other goods. * Directly involved * Machinery

Answer 43

Capital Goods

Question 44

# Classifcation of Goods According to Use are goods that man can live without but may provide comfort and satisfaction.

Answer 44

Luxury Goods

Question 45

* Applies the conclusions drawn from economic theories and empirical studies to real-world situations with the desired aim of informing economic decisions and predicting possible outcomes. * Considers society as similar to marketplace

Answer 45

APPLIED ECONOMICS