Economics Chapter 1

Question 1

Economics-

Answer 1

The branch of knowledge concerned with the production, consumption, distribution, of goods and services and the transfer of wealth. ( the study of people and the choice they make)

Question 2

Microeconomics

Answer 2

Is the study of individuals, households, and companies behavior in decision making and allocation of resources.( it generally applies to market of goods and services and deals with individual and economic issues

Question 3

Macroeconomic

Answer 3

Is the branch of economic that studies the behavior and performance of an economy as a whole( city nation global) it focuses on the aggregate changes in the economy

Question 4

Scarcity

Answer 4

The condition that results from society not having enough resources to produce all the things people would like to have (wants and need(

Question 5

Scarcity lead to what choices

Answer 5

1 what to produce?
2 how to produce?
3 for whom to produce?

Question 6

Two types of economic products

Answer 6

1 goods: a useful tangible item that is used to satisfy a need or a want(physical item)
2 services: work or labor performed by someone

Goods are tangible can be touched
Services are not tangible( intangible)

Question 7

4 types of goods

Answer 7

Durable good
Non durable good
Consumer good
Capital good

Question 8

Durable

Answer 8

An item that lasts 3 years or more when used on a regular basis( car tools washing machine)

Question 9

Non durable

Answer 9

An item that lasts less than 3 years when used regularly( food, clothes, paper)

Question 10

Consumer

Answer 10

Goods bought and used by individuals consumers( shoes shirts, automobiles

Question 11

Capital

Answer 11

A tool or good used to produce other goofs( machines, woods, steel, plastic)

Question 12

Value

Answer 12

The monetary worth of good or services

Question 13

What determines value

Answer 13

The cost that someone will pay for something

Question 14

Paradox value

Answer 14

A contradiction between the high values of non-essential items
(Diamonds) and a low value of an essential item (water)

Question 15

Adam smith

Answer 15

(Father of capitalism) for something to have value it must be scarce and have utility(worth)

Question 16

Solution of the paradox

Answer 16

Scarcity and utility are two factors that determine value

Question 17

Wealth

Answer 17

The accumulation of products that are tangible, scarce, and have utility

Question 18

TINSTAAFL

Answer 18

There is no such thing as a free lunch( there is a cost somewhere)

Question 19

Why are the economics basic choices are faced by all societies?

Answer 19

1. What to produce
   2 how to produce
   3 for whom to produce

Question 20

What to produce

Answer 20

Decisions is made either by gov( North Korea) or by the consumer( USA)

Question 21

How to produce

Answer 21

More automated machines, robots, or more workers? Must weigh the cost

Question 22

For whom to produce it

Answer 22

Housing? Low income or high income

Question 23

Our economy is made of 2 broad groups

Answer 23

Producers, consumers

Question 24

Producers

Answer 24

Person, company, or country that makes, grows, or supplies goods or commodities for sale

Question 25

Producers need( factors of production)

Answer 25

1 land
2 capital
3 labor
4 entrepreneurs

Question 26

Land

Answer 26

Natural resources

Question 27

Capital.

Answer 27

Money, tools, equipment, machinery

Question 28

Labor

Answer 28

People, workers

Question 29

Entrepreneurs

Answer 29

Individual risk takers

Question 30

Opportunity cost

Answer 30

The cost/value of the next best alternative given up(money, time, resources)

Question 31

Ever decision we make has…

Answer 31

Trade offs

Question 32

Trade off s

Answer 32

Alternative choices that must be given up in a favor of the choice we select

Question 33

Consumer

Answer 33

A person who purchases goods and services for personal use

Question 34

Consumer rights that protect the against producers

Answer 34

The right to
1 safety
2 be informed
3 choose
4 heard
5 redress

Question 35

Consumerism

Answer 35

1960s the social movement was an attempt to educate buyers about purchases they make and demand better and safer products