Intro to Economics

Question 1

study of how people use scarce resources to satisfy their wants

Answer 1

economics

Question 2

the situation that exists because wants are unlimited and resources are limited

Answer 2

scarcity

Question 3

desires that can be met by consumer products

Answer 3

wants

Question 4

things necessary for survival

Answer 4

needs

Question 5

physical objects that can be bought

Answer 5

goods

Question 6

work one person does for another for pay

Answer 6

services

Question 7

person who buys goods or services for personal use

Answer 7

consumer

Question 8

person who makes a good or provides a service

Answer 8

producer

Question 9

what are the economic questions

Answer 9

what will be produced, how will it be produced, and for whom will it be produced

Question 10

what is it called when a country lets producers and consumers decide what will be produced

Answer 10

market economy or capitalism

Question 11

if a country has an unskilled labor force, what kind of labor methods will they likely use

Answer 11

labor intensive

Question 12

if a country has a skilled labor force, what kind of labor methods will they likely use

Answer 12

capital intensive

Question 13

what are the four factors of production

Answer 13

land, labor, capital, and entrepreneurship

Question 14

benefits that encourage people to act a certain way

Answer 14

incentives

Question 15

benefits or satisfaction gained from using a good or service

Answer 15

utility

Question 16

alternative people give up when they make a choice

Answer 16

trade-off

Question 17

the value of the next-best thing alternative that a person gives up

Answer 17

opportunity cost

Question 18

examination of costs, expected benefits of choices

Answer 18

cost-benefit analysis

Question 19

the additional cost of using one more unit of a good or service

Answer 19

marginal cost

Question 20

additional benefit of using one more unit of a good or service

Answer 20

marginal benefit

Question 21

simplified representations of economic forces

Answer 21

economic models

Question 22

what simplifies economic interactions

Answer 22

Production Possibilities Curve (PPC)

Question 23

producing fewer goods and services than possible

Answer 23

underutilization

Question 24

producing the maximum number of goods and services possible

Answer 24

efficiency

Question 25

numerical data or information

Answer 25

statistics

Question 26

behavior of individual players in an economy

Answer 26

microeconomics

Question 27

behavior of economy as a whole

Answer 27

macroeconomics

Question 28

describes and explains economic behavior as it is

Answer 28

positive economics

Question 29

studies what economic behavior should be

Answer 29

normative economics

Question 30

what guides marketplaces, benefits, sellers, and buyers

Answer 30

Invisible hand