Learning It All

Question 1

Incentive

Answer 1

The reward that encourages an action, or a penalty that discourages an action

Question 2

Economics

Answer 2

The study of individuals or groups as they cope with scarcity and the incentives that cause these choices

Question 3

Microeconomics

Answer 3

Individual choices (households, businesses, government)

Question 4

Macroeconomics

Answer 4

Grupal choices (town, city, state, country, continent, global)

Question 5

What are the two questions of economics?

Answer 5

1. What, how, and for whom are goods produced?

2. Do choices made in self interest also help social interest?

Question 6

Entrepreneurship

Answer 6

Organization of other resources.

Question 7

Capital

Answer 7

Tools, instruments, machines

Question 8

Efficiency

Answer 8

Resource use is efficient if it can’t be improved upon

Question 9

Benefit

Answer 9

What you gain from something

Question 10

Cost

Answer 10

What you must give up to get something

Question 11

Production Possibilities Frontier

Answer 11

The boundary between the combination of goods that can be produced and those that can not