Vocab Quiz-Unit 1

Question 1

Economics

Answer 1

Study of scarcity of choice, social science of how individuals seek to satisfy material needs and desires

Question 2

Macroeconomics

Answer 2

Study of the whole economy- structure, performance,etc.

Question 3

Scarcity

Answer 3

Total production of good and services= less than total wants of society

Question 4

Opportunity Cost

Answer 4

What you must give up in order to get something

Question 5

Resource

Answer 5

Anything can can be used to produce something else ex: factor of production

Question 6

Land, Labor, Physical Capital, Entrepreneurship

Answer 6

1. Natural resources 2. Efforts of workers 3. Durable manufactured goods in production 4. Innovation, risk taking

Question 7

Consumer Good, Capital Good

Answer 7

1. Any good purchased for consumption 2. Good used to produce(as an input) to something else

Question 8

Efficiency

Answer 8

Maximizing production, profit, or any other objective

Question 9

Equity

Answer 9

Fairness or desirability of a distribution of goods

Question 10

Positive, Negative Statement

Answer 10

1. Describes what is or what is predicted- date 2. No data, states something based on opinion

Question 11

Model

Answer 11

Simplified representation used to better understand the real world,

Question 12

Ceteris Paribus

Answer 12

All other things equal, relevant factors remain unchanged

Question 13

Rationality

Answer 13

People want more of a good thing; people make choices to attain goals

Question 14

Perfect Information

Answer 14

Everyone has complete info about prices/qualities of products available for purchase

Question 15

Incentives

Answer 15

Rewards or punishments that motivate choices or decisions

Question 16

Comparative advantage

Answer 16

Being able to produce aa good or service at a lower opportunity cost(give up less)

Question 17

Absolute advantage

Answer 17

Being able to produce more of a good or service with a given amount of resources OR produce more with less

Question 18

PPC

Answer 18

Graphical representation of combinations of production that are possible using available resources in the production of goods

Question 19

Terms of Trade

Answer 19

Price(of one good in terms of another) at which two goods can be traded internationally