Econ Unit 1 Vocab

Question 1

Economics

Answer 1

Social Science dealing with the study of how people satisfy seemingly unlimited and competing wants with the careful use of scarce resources (study of scarcity)

Question 2

Want

Answer 2

A desire that can be satisfied by consuming goods or services

Question 3

Need

Answer 3

Basic requirement for survival; includes food, clothing, shelter

Question 4

Good

Answer 4

Tangible economic product that is used to satisfy wants and needs

Question 5

Service

Answer 5

Work or labor performed for someone; economic product that includes haircuts, home repairs, forms of entertainment

Question 6

Consumerism

Answer 6

A social movement aimed at promoting the interests of consumers

Question 7

Scarcity

Answer 7

Condition that results from society not having enough resources to produce all the things people would like to have

Question 8

Paradox of Value

Answer 8

Condition that arises because some non-essentials have a high value while some essentials have low value

Question 9

Utility

Answer 9

Capacity to be useful and provide value

Question 10

Opportunity Cost

Answer 10

Cost of the next best alternative use of money, time, or resources when one choice is made rather than another

Question 11

Wealth

Answer 11

The sum of tangible economic goods that are scarce, useful and transferable from one person to another

Question 12

Durable Good

Answer 12

Good that lasts for at least three years when used regularly

Question 13

Non-durable Good

Answer 13

Products that are consumed or are only useable for a short period of time because they wear out or become useless

Question 14

Capital Good

Answer 14

Tool, equipment, or other manufactured good used to produce other goods and services

Question 15

Consumer Good

Answer 15

A good intended for final use by the consumer, rather than businesses; such as a television

Question 16

Entrepreneur

Answer 16

Risk-taking individual in search of profits; one of the four factors of production

Question 17

Gross Domestic Product

Answer 17

Dollar value of all final goods, services, and structures produced within a country’s borders in a 12-month period

Question 18

Land

Answer 18

The factor of production that includes natural resources not created by humans

Question 19

Labor

Answer 19

Abilities and skills that are used for producing goods and services

Question 20

Capital

Answer 20

Factors of production that includes tools, equipment, machinery, and factories used in the production of goods and services