Unit 1; Scarcity

Question 1

Scarcity

Answer 1

the state of being scarce or in short supply; shortage

Question 2

Trade-Off

Answer 2

The exchange of one thing for another of more or less or equal value, especially to effect a compromise

Question 3

Opportunity Cost

Answer 3

The money or other benefits lost when pursuring a particular course of action instead of a mutually-exclusive alternative

Question 4

Factors of Production

Answer 4

Land, Labor, Capital, and Entrepreneurship

Question 5

Land

Answer 5

Natural resources such as land, water, and minerals

Question 6

Labor

Answer 6

Human effort and skills

Question 7

Physical Capital

Answer 7

Human-made products the mare made for other products

Question 8

Human Capital

Answer 8

Skills, abilities, health, knowledge, and motivation

Question 9

Entrepreneurship

Answer 9

The ability to organize and manage the other factors to create goods or services

Question 10

Utility

Answer 10

The state of quality of being useful; usefulness

Question 11

Marginal Analysis

Answer 11

An examination of the associated costs and potential benefits of specific business activities.

Question 12

Law of Diminishing Marginal Utility

Answer 12

As someone consumers more of a good or service, the additional satisfaction(marginal utility) they receive from each additional unit consumed decreases

Question 13

Monetary Incentive

Answer 13

A form of reward that involves financial compensation to motivate individuals to achieve specific goals or outcomes

Question 14

Non-Monetary Incentive

Answer 14

A form of reward that doesn’t involve any kind of financial compensation for anything

Question 15

Maria is weighing her options for spending her time after school. She is deciding whether to join the volleyball team, audition for a major in the annual school musical, or join the school’s film club. Ultimately, she decides to join the school’s film club although she would have joined the volleyball team if the film club wasn’t meeting this school year. What was the issue of scarcity in this situation?

Answer 15

The issue of scarcity in this situation is that if the film club wasn’t running this year, then she wouldn’t have been able to join what her top choice for an after school activity is.

Question 16

Maria is weighing her options for spending her time after school. She is deciding whether to join the volleyball team, audition for a major in the annual school musical, or join the school’s film club. Ultimately, she decides to join the school’s film club although she would have joined the volleyball team if the film club wasn’t meeting this school year. What was Maria’s trade offs and opportunity cost?

Answer 16

Trade offs - Volleyball team, school musical
Opportunity cost -if she was very good at doing volleyball, her opportunity cost would have been the doing well on the volleyball team, but if she were good at singing, acting and/or dancing, her opportunity cost would’ve been getting the role in the musical.

Question 17

What has the greatest impact on the value of a good or service?

Answer 17

Supply and demand

Question 18

What are the three economic questions that every society must answer?

Answer 18

1. What is being produced?
2. How is it being produced?
3. Who is it being produced for?

Question 19

What type of decision making is Clack engaged in when he is deciding whether to have another slice of pizza?

Answer 19

The law of diminishing marginal utility.