Unit 1: Introduction To Economics

Question 1

Define Economics

Answer 1

The study/practice of making choices in a world of limited resources.

Question 2

Define Scarcity

Answer 2

When an individual’s wants is unlimited, but resources are limited.

Question 3

Define Cost

Answer 3

What is given up when a choice is made.

Question 4

Define Need

Answer 4

Something that is necessary to sustain life or for survival.

Question 5

Define Want

Answer 5

Something that is not necessary, but a desire.

Question 6

Define Producer

Answer 6

A person, company, or country that makes, grows, or supplies goods or services

Question 7

Define Consumer

Answer 7

A person purchasing a good or service

Question 8

Define Opportunity Cost

Answer 8

The value of the next best option not selected

Question 9

What are the 3 big economic questions?

Answer 9

1. What will be produced?
2. How will it be distributed?
3. How will it be produced?

Question 10

What are the 4 factors of production?

Answer 10

1. Labor
2. Land/Natural Resources
3. Capital
4. Entrepreneurship

Question 11

What are 3 examples of labor?

Answer 11

1. Construction Workers
2. Mechanics
3. Painter

Question 12

What are 3 examples of land/natural resources?

Answer 12

1. Sheep
2. Clay
3. Tree

Question 13

What are 3 examples of capital?

Answer 13

1. Hammer
2. Computer
3. Truck

Question 14

What are 3 examples of entrepreneurship?

Answer 14

1. Elon Musk
2. Bill Gates
3. Oprah Winfrey

Question 15

What are the 6 economic goals?

Answer 15

1. Economic Efficiency
2. Economic Equity
3. Economic Growth
4. Economic Freedom
5. Economic Security
6. Economic Stability

Question 16

What is economic efficiency?

Answer 16

Making the most out of our resources.

Question 17

What is economic equity?

Answer 17

Fair and just distribution of society’s wealth.

Question 18

What is economic growth?

Answer 18

Improving standard of living by producing more and better goods and services.

Question 19

What is economic freedom?

Answer 19

The ability to make your own decisions without government interference.

Question 20

What is economic security?

Answer 20

The ability of people to meet their needs consistently.

Question 21

What is economic stability?

Answer 21

Goods and services are there when we want them.

Question 22

What are the 4 economic systems?

Answer 22

1. Capitalism
2. Socialism
3. Communism
4. Traditionalism

Question 23

Describe capitalism in 6 words.

Answer 23

Private, controlled, free market, profit, and wages.

Question 24

Describe socialism in 6 words.

Answer 24

Equity, public, group, and needs over wants.

Question 25

Describe communism in 6 words.

Answer 25

Government owned, economic equality, and classless society.

Question 26

Describe traditionalism in 6 words.

Answer 26

Customs, history, beliefs, hunting/gathering, and agriculture.