Unit 1 Vocabulary

Question 1

Economics

Answer 1

The study of choices because of scarcity

Question 2

Microeconomics

Answer 2

Examines how individuals make choices based on scarcity

Question 3

Macroeconomics

Answer 3

Examines how large groups make choices based on scarcity

Question 4

Scarcity

Answer 4

The state of being in short supply

Question 5

Wants

Answer 5

Secondary-nice to have

Question 6

Needs

Answer 6

Priority for survival

Question 7

Tradeoff

Answer 7

What you gain or the advantages of what you chose

Question 8

Opportunity Cost

Answer 8

What you give up when you choose

Question 9

Resources

Answer 9

Items used to make goods (physical items) and services (activities) to meet people’s needs & wants

Question 10

Marginal Cost

Answer 10

The cost to produce or do for just one more (disadvantage)

Question 11

Marginal Benefit

Answer 11

The benefit to produce or do for just one more (advantage)

Question 12

Productivity

Answer 12

Producing goods and services through efficient use of the factors of production

Question 13

Factors of Production

Answer 13

Land, labor, capital, entrepreneurs

Question 14

Land/Natural Resources

Answer 14

The raw materials in the production process what we use to make goods

Question 15

Labor

Answer 15

Employees

Question 16

Capital Resources

Answer 16

All the man-made assets that are used to manufacture goods

Question 17

Human Resources

Answer 17

The division of a business responsible for finding, recruiting, screening, and training job applications

Question 18

Entrepreneur

Answer 18

Who runs the company

Question 19

Capital Goods

Answer 19

Used to make other goods

Question 20

Consumer Goods

Answer 20

Final products that are purchased

Question 21

Fixed Costs

Answer 21

Cost stays the same no whether you use it or not

Question 22

Variable Costs

Answer 22

Cost increase the most you use it

Question 23

Type of Economies

Answer 23

Traditional economies, command economies, mixed economies, market economies

Question 24

Traditional/Subsistence Economy

Answer 24

Decisions about resources are made by habit, custom, superstition, or religious tradition

Question 25

Command Economy

Answer 25

Government control economy

Question 26

Market Economy

Answer 26

Business can complete with little to NO government influence

Question 27

Mixed Economy

Answer 27

Most resources are still privately owned while the government makes key decisions about public services