Economic Way of Thinking

Question 1

the two basic desires of consumers-

Answer 1

needs

wants

Question 2

a ________ is desires that can be satisfied by consuming a good

Answer 2

want

Question 3

a _________ is basic necessities for life

Answer 3

need

Question 4

________ is a situation in which there is not enough resources to reach human wants - affects how goods are made and the services provided

Answer 4

scarcity

Question 5

_________ are the study of how people use scarce resources to satisfy their needs

Answer 5

economics

Question 6

________ is central to use scarce resources

Answer 6

choice

Question 7

_________ are work that one person preforms for another payment

Answer 7

services

Question 8

a _______ is a person who buys goods and services

Answer 8

consumer

Question 9

a_________ is a person who makes the goods or services

Answer 9

producer

Question 10

Three basic economic questions that scarcity requires

Answer 10

what is to be produced
how is it produced
for whom will it be produced

Question 11

____________–are the resources needed to make something

Answer 11

factors of production

Question 12

four categories of the factors of production

Answer 12

land
labor
capital
entrepreneurship

Question 13

__________ includes all natural resources found on earth

Answer 13

land

Question 14

________ is human time and effort

Answer 14

labor

Question 15

___________ is the resources used by people to do something

Answer 15

capital

Question 16

__________ is knowledge and skill gained through experience

Answer 16

human captital

Question 17

____________ is the combination of vision and skill to operate a business - are risk takers, risking time and money to make a profit

Answer 17

entrepreneurship

Question 18

_________ are methods used to get people to to take a certain action

Answer 18

incentives

Question 19

_________ is the benefit/satisfaction received from doing something

Answer 19

utility

Question 20

___________ means making decisions according to the best combination of cost ad benefits

Answer 20

economize

Question 21

____________ can take the form of money/time/something you value
every choice involves ________ as well

Answer 21

costs

Question 22

____________ do not require all or nothing choices

Answer 22

trade offs

Question 23

_________ is the value of the next best alternative, what you give up for choosing one decision over another

Answer 23

opportunity cost

Question 24

examining the cost and expected benefits of a choice as an aid to make a decision, most useful tool to evaluate the worth of choices

Answer 24

cost benefit analysis

Question 25

_______________ shows what you get and what you give up when making choices

Answer 25

decision making grid

Question 26

_________ is the additional cost of using one more unit of product

Answer 26

Marginal cost

Question 27

___________ is the additional satisfaction from using one more unit of product

Answer 27

marginal bebefit

Question 28

____________ is a graph constructed by economist to show the impact of scarcity on an economy

Answer 28

production possibilities frontier

Question 29

__________ is a latin phrase used in economics to mean all things being held equal or constant

Answer 29

ceteris paribus

Question 30

the ________ shows the border between what is possible to produce and what is not

Answer 30

PPF

Question 31

__________is when resources are being used to produce the maximum amount of goods

Answer 31

efficiency

Question 32

__________ is when resources are not being used to full potential

Answer 32

underutilization / inefficiency

Question 33

things that make the PPF shif outward

Answer 33

economic growth

technology

Question 34

things that make PPF shift inward

Answer 34

natural disaster

war/sickness