Econ Vocab 1

Question 1

Wants

Answer 1

desires that can be satisfied by consuming a good or service

Question 2

Needs

Answer 2

things such as food, clothing, and shelter, that are necessary for survival

Question 3

Scarcity

Answer 3

the situation that exist when there are not enough resources to meet human wants

Question 4

Economics

Answer 4

The study of how people choose to use scarce resources to satisfy their wants

Question 5

Goods

Answer 5

are physical objects that can be purchased, such as food, clothing, and furniture

Question 6

Services

Answer 6

work that one person performs for another for payment

Question 7

Consumer

Answer 7

a person who buys goods or services for personal use

Question 8

Producer

Answer 8

a person who makes goods or provides services

Question 9

Factors of Production

Answer 9

resources needed to produce goods and services

Question 10

Land

Answer 10

means all natural resources on or under the ground

Question 11

Labor

Answer 11

is all the human time, effort, talent used to make products

Question 12

Capital

Answer 12

Is a producer’s physical resources

Question 13

Entrepreneurship

Answer 13

Vision, skill, ingenuity, willingness to take risks

Question 14

Incentives

Answer 14

Benefits that encourage people to act in certain ways

Question 15

Utility

Answer 15

Benefit of satisfaction gained from using a good or service

Question 16

Economize

Answer 16

Making decision according to best combination of costs and benefits

Question 17

Trade-off

Answer 17

Alternative people give up when they make a choice

Question 18

Opportunity Cost

Answer 18

The value of next best alternative a person gives up

Question 19

Cost-benefit analysis

Answer 19

Examination of cost, expected benefits of choices

Question 20

Marginal cost

Answer 20

Additional cost of using one more unit of a good or service.

Question 21

Marginal benefit

Answer 21

Additional benefit of using one more unit of a good or service