social 12 (econ)- chapter 1

Question 1

economics

Answer 1

the study of the choices that people make to satisfy their needs and wants

Question 2

economist

Answer 2

a person who studies economic choices

Question 3

microeconomics

Answer 3

the study of the choices made by economic actors such as households, companies, and individual markets

Question 4

macroeconomics

Answer 4

examines the behavior of entire economics ex: unemployment in the US, GDP

Question 5

consumers- the people who decide to buy things

producers- the people who make the things that satisfy consumers’ needs and wants

Answer 5

two groups of economic decision makers

Question 6

goods

Answer 6

physical objects that can be purchased

Question 7

services

Answer 7

actions or activities that are performed for a fee

Question 8

resource

Answer 8

anything that people use to make or obtain what they need/want

Question 9

natural resources

Answer 9

items provided by nature that can be used to produce goods and to provide services

Question 10

human resources

Answer 10

any human effort exerted during production

Question 11

capital resources

Answer 11

the manufactured materials used to create products

Question 12

entrepreneurship

Answer 12

the combination of organizational abilities and risk taking involved in starting a new business or introducing a new product

Question 13

scarcity

Answer 13

the combination of limited economic resources and unlimited wants

Question 14

forces people to make to make decisions about how to use resources effectively

Answer 14

basic problem of economics

Question 15

allocate

Answer 15

to distribute

Question 16

• what to produce
• how to produce
• for whom to produce

Answer 16

three basic economic questions that must be addressed

Question 17

productivity

Answer 17

the level of output that results from a given level of input

Question 18

efficiency

Answer 18

the use of the smallest amount of resources to produce the greatest amount of output

Question 19

division of labor

Answer 19

assigning a small number of tasks to each worker

Question 20

specialization

Answer 20

focus on one activity

Question 21

trade off

Answer 21

one good is sacrificed for another

Question 22

opportunity cost

Answer 22

the cost of the tradeoff- the value of the next best alternative that is given up to obtain the preferred item

Question 23

exchange

Answer 23

producers and consumers agree to provide one type of item in return for another

Question 24

barter

Answer 24

direct trade; people exchange one set of goods for another

Question 25

money

Answer 25

an item that is readily accepted by people in return for goods and services

Question 26

1. a standardized item that is generally traded for goods or services
2. a measure of value that allows both producers and consumers to determine and express worth
3. a store of value that can be saved and used to purchase items at a later date

Answer 26

three functions of money

Question 27

credit

Answer 27

allows consumers to use items before completing payment for the merchandise.

Question 28

value

Answer 28

can be expressed as an amount of money or price

Question 29

utility

Answer 29

the usefulness to a person

Question 30

self-sufficiency

Answer 30

the ability to fulfill all of one’s needs without assistance

Question 31

interdependence

Answer 31

events or developments in one region of the world or sector of the economy influence events or developments in other regions or sectors.