Unit 1

Question 1

Define Economics

Answer 1

How people use scarce and limited resources to satisify wants and needs

Question 2

Define a need

Answer 2

basic survival requirement

Question 3

Define a want

Answer 3

Not a necessity or a way of expressing a need

Question 4

To be scarce somethings needs to be these 3 qualities

Answer 4

Desired, limited, useful in more than one way

Question 5

Define utility

Answer 5

amount of usefulness or satisfaction one gets from using something

Question 6

Marginal utility

Answer 6

the extra amount of enjoyment we get from an extra item

Question 7

What is diminishing marginal utility

Answer 7

Your appreciation goes down as you use something or acquire something more and more

Question 8

What is opportunity cost

Answer 8

the cost of the next best alternative use of money or resources

Question 9

What are microeconomics

Answer 9

The study of decision making by small groups or individuals

Question 10

What is Macroeconomics

Answer 10

Decision making by large groups of people

Question 11

what are the 4 factors of production

Answer 11

Land, labor, capital and entreprenours

Question 12

What is capital

Answer 12

A good or resource that can be used to produce goods or services

Question 13

What is a good

Answer 13

an economic product that is tangible

Question 14

What is a service

Answer 14

work performed for someone

Question 15

What is value

Answer 15

monetary expression of an item

Question 16

A consumer is

Answer 16

one who buys goods or services

Question 17

consumer goods are

Answer 17

items bought for by and for consumer use

Question 18

Durable goods are

Answer 18

Items that can last for 3 years or more

Question 19

Wealth is

Answer 19

Accumulation of those products that are tangible, scarce, useful and transferable from one person to another

Question 20

Comparative advantage is

Answer 20

the ability to produce something at a lower opportunity cost that other producers

Question 21

What is the law of comparative advantage

Answer 21

an individual, firm, or region with the lowest opportunity cost of producing a good should specialize in that good

Question 22

What is absolute advantage

Answer 22

the ability to produce something using the fewewst resources that other producers

Question 23

Why do people trade

Answer 23

because everyone thinks that they are getting the better end of the deal

Question 24

Do people spend more on wants or needs

Answer 24

wants

Question 25

What is a budget

Answer 25

an organized plan for spending money