Economic Environment

Question 1

the study of how humans make decisions in the face of scarcity.

Answer 1

economics

Question 2

exists when human wants for goods and services exceed the available supply.

Answer 2

scarcity

Question 3

indicate what must be given up to obtain something that’s desired.

Answer 3

opportunity costs

Question 4

work required to produce a good or service is separated into tasks performed by different workers

Answer 4

division of labor

Question 5

when workers or firms focus on tasks for which they are well suited within the overall production process

Answer 5

specialization of labor

Question 6

focuses on the actions of individual agents within the economy, like households, workers, and businesses

Answer 6

microeconomics

Question 7

studies the economy as a whole. It focuses on goals such as growth in the standard of living, low unemployment, and low inflation

Answer 7

macroeconomics

Question 8

when the average cost of producing each individual unit declines as total output increases

Answer 8

economics of sale