Economics Chapter 1

Question 1

A thing that we desire to have

Answer 1

want

Question 2

anything that is used to produce goods or services. For example, a person’s labor may be used to produce computers, TV sets, and much more, and therefore a person’s labor is a resource

Answer 2

resource

Question 3

the condition in which our wants are greater than the resources available to satisfy those wants

Answer 3

scarcity

Question 4

the most highly valued opportunity or alternative forfeited when a choice is made

Answer 4

opportunity cost

Question 5

a situation in which more of one thing necessarily means less of something else

Answer 5

trade-off

Question 6

a graphic represntation of all possible combinations of two goods that an economy can produce

Answer 6

production possibilities frontier

Question 7

rationing device

Answer 7

a means for deciding who gets what portion of the available resources and goods

Question 8

the science that studies the choices of people trying to satisfy their wants in a world of scarcity

Answer 8

economics

Question 9

adding one more

Answer 9

marginal

Question 10

something that ecourages or motivates a person to take action

Answer 10

incentive

Question 11

the branch of economics that deals with human behavior and choices as they relate to relatively small units- an individual, a business firm, or a single market

Answer 11

microeconomics

Question 12

the branch of economics that deals with human behavior and choices as they relate to the entire economy

Answer 12

macroeconomics

Question 13

an explanation of how something works, designed to answer a question for which there is no obvious answer

Answer 13

theory

Question 14

able to be felt by touch

Answer 14

tangible

Question 15

not able to be felt by touch

Answer 15

intangible

Question 16

anything that satisfies a person’s wants or brings satisfaction; also, tangible products

Answer 16

goods

Question 17

the quality of bringing satisfaction or happiness

Answer 17

utility

Question 18

the quality of bringing dissatisfaction of unhappiness

Answer 18

disutility

Question 19

tasks that people pay others to perform for them

Answer 19

services

Question 20

all the natural resources found in nature. An acre of land, mineral deposits, and water

Answer 20

land

Question 21

the physical and mental talents that people contribute to the production of goods and services.

Answer 21

labor

Question 22

produced goods that can be sed as resources for further production such as factories, machines, and farm tractors

Answer 22

capital

Question 23

the special talent that some people have for searching out and taking advantage of new business opportunities and for developing new products and new ways of doing things

Answer 23

entrepreneurship