Unit 2 Chapter 5 terms

Question 1

the production of more goods and ser­ vices because business firms are using more land, labor, or financial capital

Answer 1

Extensive growth

Question 2

items that are purchased for personal use

Answer 2

Consumer goods

Question 3

the production of more goods or services by using existing factors of production with greater efficiency

Answer 3

Intensive growth

Question 4

items that are used to produce consumer goods; also called real capital

Answer 4

Capital goods

Question 5

the allocation of limited resources to produce either consumer goods or capital goods

Answer 5

consumer goods/capital goods tradeoff

Question 6

describes a business firm that uses a great deal of human labor relative to real capital

Answer 6

Labor intensive

Question 7

describes a business firm that uses more automated equipment than human labor

Answer 7

Capital intensive

Question 8

an increase in the quantity of goods and services a nation can produce

Answer 8

Economic growth

Question 9

What is society’s economic problem

Answer 9

How best to accomplish ts economic goals

Question 10

He is unemployment a problem for society

Answer 10

Unemployment is a waste of Human labor and is usually accompanied by poverty, crime, and despair

Question 11

Extensive growth and intensive growth

Answer 11

Extensive growth producers ore goods and services by nice wasting land, labor, r capital , intensive growth the economy does not increase the f the factors if production only if necessary amount

Question 12

What are three critical questions that society must answer as it seeks to meet economic goals

Answer 12

What will it produce ? How will it produce ? Who will receive the production

Question 13

How is the consumer goods/capital goods tradeoff a matter of spending versus saving?

Answer 13

When people spend money for consumer goods rather than save it, financial institutions do not have money available to loan to bussinesses (for capital goods), and the inverse is true.

Question 14

What is the difference between a labor intensive business and a capital intensive business?

Answer 14

A labor intensive business uses a higher number of workers to produce its products, and a capital intensive business places a greater emphasis on machinery and equipment to produce its product.

Question 15

What should be the standard that Christians use to answer the distribution question

Answer 15

Scripture