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Economics > Economics Test 1 > Flashcards

Economics Test 1 Flashcards

1
Q

Consumers have two basic desires

A

Wants and Needs

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2
Q

____ are desires that can be satisfied by consuming a good or service

A

wants

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3
Q

____ are things such as food, clothing, and shelter, that are necessary for survival.

A

needs

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4
Q

____ is the situation that exist when there are not enough when there are not enough resources to meet human wants

A

Scarcity

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5
Q

______ is the study of how people choose to use scarce resources to satisfy their wants

A

economics

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6
Q

Economics involve:

A
  1. Examining how individuals, business, gov and societies chose to use scarce resources to satisfy their wants2. organizing analyzing and interpreting data about those economic behaviors3. Developing theories and economic laws that explain how the economy works and to predict what might happen in the future
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7
Q

____ is central to the use of scarce resources

A

choice

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8
Q

____ affects which goods are made and which services are provided

A

Scarcity

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9
Q

_____ are physical objects that can be purchased.

A

Goods

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10
Q

_____ are work that one person performs for another for payment

A

services

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11
Q

_____ is a person who buys goods or services for personal use

A

Consumer

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12
Q

____ is a person who makes goods or produces services

A

Producer

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13
Q

Scarcity requires every society to address three basic economic question

A

-What will be produced-How will it be produced -For whom will it be produced

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14
Q

The scarcity economic questions involves not only what to produce but also how much to _______

A

produce

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15
Q

_________ have to decide exactly how they are going to get these goods and services to people

A

Societies

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16
Q

_______ are the resources needed to produce goods and services

A

Factors of production

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17
Q

They divide factors of production into four broad categories:

A

land
labor
capital
entrpreneurship

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18
Q

All of these factors have one thing in common their supply is ____

A

limited

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19
Q

______ includes all the natural resources found in or under the ground that are used to produce goods and services

A

Land

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20
Q

_____ is all the human time, effort, and talent that go into the making of products

A

labor

21
Q

_____ is all the resources made and used by people in produce and distribute goods and services

A

capital

22
Q

____ is all of the producer’s physical resources

A

capital

23
Q

__________ is the knowledge and skills gained through experiences, While businesses invest in real capital, workers invest in human capital

A

Human capital

24
Q

___________ is the combination of vision, skill, ingenuity, and willingness to take risks that is needed to create and run new businesses and are also risk takers

A

Entrepreneurship

25
Q

For this reason capital is sometimes called _________. Has two other names.

A

physical capital, or real capital

26
Q

Factors that shape economic choice:

A

Incentive

Utility

27
Q

_____ are methods used to encourage people to take certain actions

A

Incentives

28
Q

_____ is the benefit or satisfaction received from using a good or service

A

Utility

29
Q

To ____ means to make decisions according to the best combination of costs and benefits. When yo do this you use both Incentives and Utilities.

A

economize

30
Q

____ can take the form of money, time, or some thing you value

A

Costs

31
Q

_______ do not require all or nothing choices, rather they involve giving up some of one thing to gain more of another

A

Trade offs

32
Q

________ of a decision is the value of the next-best alternative, or what you give up by choosing one alternative over another

A

Opportunity costs

33
Q

the practice of examining the costs and the expected benefits of a choice as an aid to decision making is called ______

A

cost benefit analysis

34
Q

Cost benefit analysis is one of the most useful tools for individuals when they need to evaluate the relative worth of economic choices

A

.

35
Q

The simplest application of cost benefit analysis is the

A

decision making grid

36
Q

The _____ grid shows what you get and what you give up when you make choices

A

decision making grid

37
Q

Costs and benefits change over time as do goals and circumstances

A

.

38
Q

The analysis of marginal costs and marginal benefits is central to the study of economics

A

.

39
Q

________ is the additional cost of using one or more unit of product

A

margial cost

40
Q

______ is the additional satisfaction from using one more unit of a product

A

marginal benefit

41
Q

The _________ is a graph used by economist to show the impact of scarcity on the economy.

A

The Production Possibility Frontier (PPF)

42
Q

The PPF is based on assumptions that simplify economic interactions:

A
  • Resources are fixed
  • All resources are fully employed
  • Only two things will be produced
  • Technology is fixed
43
Q

_____ is a latin phrase used in economics to meaning all other things being held equal or constant

A

Ceteris paribus

44
Q

The PPF represents the _______ btw what it is possible to produce and what we cant produce

A

.border or frontier

45
Q

The PPF shows the _____ of each choice in a visual way.

A

opportunity costs

46
Q

The PPF illustrates a country’s _____________ as if all resources were fixed.

A

present production possibilities

47
Q

Anything that causes economic output to increase or decrease will shift the curve.

A

.

48
Q

Things that would make the PPF shift outward:

A
  • Economic Growth

- Technology

49
Q

Things that would make the PPF shift inward:

A
  • Natural Disaster

- War/plague

Economics (2 decks)

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