What Is Economics

Question 1

Need

Answer 1

Something essential for survival

Question 2

Want

Answer 2

Something that people desire but that is not necessary for survival

Question 3

Economics

Answer 3

Study of how people seek to satisfy their needs and wants by making choices

Question 4

Goods

Answer 4

Physical objects such as clothes or shoes

Question 5

Services

Answer 5

Actions or activities that one person performs for another

Question 6

Scarcity

Answer 6

Limited quantity of resources to meet unlimited wants

Question 7

Shortage

Answer 7

Situation in which a good or services is unavailable

Question 8

Factors of Production

Answer 8

Land, labor, capital, entrepreneurship: resources that are used to make goods and services

Question 9

Land

Answer 9

Natural resources used to produce goods and services

Question 10

Labor

Answer 10

Effort people devote to tasks for which they are paid

Question 11

Capital

Answer 11

Any human-made resource that is used to create other goods and services

Question 12

Physical Capital

Answer 12

Human-made goods that are used to produce other goods and services: tools and buildings

Question 13

Human Capital

Answer 13

Skills and knowledge gained by a worker through education and experience

Question 14

Entrepreneur

Answer 14

Ambitious leader who combines land, labor, and capital to create and market new goods and services

Question 15

Trade-off

Answer 15

Alternative that we sacrifice when we make a decision

Question 16

Guns or Butter

Answer 16

Phrase that refers to the trade-offs that nation face when choosing whether to produce more or less military or consumer goods

Question 17

Opportunity Cost

Answer 17

The most desirable alternative given up as the result of a decision

Question 18

Thinking at the Margin

Answer 18

Deciding whether to do or use one additional unit of some resource