economics chapter 1

Question 1

microeconomics

Answer 1

economic behavior of individuals

Question 2

macroeconomics

Answer 2

study of economic trends as a whole

Question 3

capital goods

Answer 3

machines and tools

Question 4

utility

Answer 4

benefit or satisfaction gained from use of a good or service

Question 5

shortage

Answer 5

temporary limit of supply

Question 6

labor

Answer 6

human time

Question 7

incentive

Answer 7

benefits offered to encourage people to act a certain way

Question 8

good

Answer 8

object that can be purchased

Question 9

factors of production

Answer 9

land labor capital entrepreneurship

Question 10

entrepreneur

Answer 10

risk taker

Question 11

opportunity cost

Answer 11

give up something to gain something else

Question 12

trade off

Answer 12

losing second choice when making first choice

Question 13

diminishing marginal utility

Answer 13

satisfaction decreases with each additional unit

Question 14

production possibilities curve

Answer 14

max number or products that can be produced with limited resources

Question 15

human capital

Answer 15

employees that make completion of businesses possible

Question 16

“holding the paper”

Answer 16

references who holds a mortgage or finance agreement or terms of repayment

Question 17

entrepreneurs

Answer 17

provide jobs goods and services

Question 18

human capital

Answer 18

skills that use tools efficiently

Question 19

scarcity

Answer 19

fundamental problem of economics

Question 20

the wealth of nations

Answer 20

book by adam smith

Question 21

investment

Answer 21

not a factor of production

Question 22

“how should it be ensured that goods and services are paid for

Answer 22

not an economic question

Question 23

guns or butter

Answer 23

should economy invest in consumers or military

Question 24

cost benefit analysis

Answer 24

aid to economic decision making that weighs benefits of action against cost