question

___ means that ppl cant acquire all of their wants so they must decide which wants are more important to them

answer

scarcity

question

3 factors of production

answer

land, labor, capital

question

something essential for survival

answer

need

question

something that ppl desire but that is not necessary for survival

answer

want

question

physical objects that someone produces

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goods

question

actions or activities that one person performs for another

answer

services

question

principle that limited amounts of goods and services are available to meet unlimited wants

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scarcity

question

study of how ppl seek to satisfy their needs and wants by making choices

answer

economics

question

a situation in which consumers want more of a good or service than producers are willing to make available at particular prices

answer

shortage

question

a person who decides how to combine resources to create goods and services

answer

entrepreneur

question

the resources that are used to make goods and services

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factors of production

question

all natural resources used to produce goods and services(water)

answer

land

question

the effort ppl devote to tasks for which they are paid

answer

labor

question

any human made resource that is used to produce other goods and services

answer

capital

question

the human made objects used to create other goods and services(dishwasher)

answer

physical capital

question

the knowledge and skills a worker gains through education and experience(school)

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human capital

question

ppl satisfy their needs and wants w __ and ___

answer

goods, services

question

peoples needs and wants are ___

answer

unlimited

question

goods and services are ___

answer

limited

question

play a key role in turning scarce resources into goods and services

answer

entrepreneurs

question

risk takers

answer

entrepreneurs

question

entrepreneurs are willing to take risks bc they will be rewarded through __

answer

profits

question

develop original ideas, start businesses, create new industries and fuel economic growth

answer

entrepreneurs

question

a entrepreneurs first task is to assemble the factors of production:

answer

land, labor, capital

question

refers to all natural resources used to produce goods and services

answer

land

question

these __ resources include oil, coal, iron, water, forests, fertile land

answer

land

question

effort ppl debote to tasks for which they are paid

answer

labor

question

labor includes: medical care provided by a __ classroom instruction provided by a __ tightening of a bolt by an assembly line worker creation of a painting by a artist repair of a television by a technician

answer

doctor, teacher

question

refers to any human made resource that is used to produce other goods and services

answer

capital

question

an economy requires both __ and ___ __ to produce goods and services

answer

physical, human capital

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___ capital includes buildings, equipment and tools

answer

physical

question

__ capital includes a college education, training, job experience

answer

human

question

key factor of production bc ppl and companies can use it to save a great deal of time and money

answer

capital

question

benefits of capital include increase ___ , ___, ___, better __ management,

answer

efficiency, knowledge, productivity

question

the alternatives that we give up when we choose one course of action over another

answer

trade off

question

a phrase expressing the idea that a country that decides to produce more military goods has fewer resources to produce consumer goods and vice versa

answer

guns or butter

question

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

answer

opportunity cost

question

the process of deciding how much more or less to do

answer

thinking at the margin

question

the extra cost of adding a unit

answer

marginal cost

question

the extra benefit of adding a unit

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marginal benefit

question

__ ___ affects decision making bc when we make decisions about how to spend our scare resources like money or time, we are giving up the chance to spend that money or time on something else

answer

opportunity cost

question

all individuals, businesses, and large groups of ppl make decisions that involve __ __

answer

trade offs

question

__ __ involve things that can be easily measured such as money, property, and time or things that cant be easily measured, like enjoyment of job satisfaction

answer

trade offs

question

businesses make trade offs when they decide how to use their __ __ __

answer

factors of production

question

the most desirable alternative somebody gives up as a result of a decision is the __ __

answer

opportunity cost

question

every choice involves an opportunity cost bc we always face an opportunity cost. when we select one alternative, we must __ another.

answer

sacrifice

question

using a _ _ _ can help you decide if you are willing to accept the opportunity cost of a choice you are about to make

answer

decision making grid

question

deciding by thinking on the margin involves comparing the opportunity costs and benefits. this decision making process is called a

answer

cost/ benefit analysis

question

a graph that shows alternative ways to use an economy's productive resources

answer

production possibilities curve

question

a line on a production possibilities curve that shows the maximum possible output an economy can produce

answer

production possibilities frontier

question

the use of resources in such a way as to maximize the output of goods and services

answer

efficiency

question

the use of fewer resources than an economy is capable of using

answer

underutilization

question

an economic principle which states that as production shifts from making one good or service to another, more and more resources are needed to increase production of the second good or service

answer

law of increasing costs

question

how does a nation decide what and how to produce?

answer

production possibilities curve

question

this curve helps a nations economists determine the alternative ways of using that nations resources (graph)

answer

production possibilities curve

question

economists often use __ to analyze the choices and trade offs that ppl make

answer

graphs

question

The line on a the curve that shows the maximum possible output an economy can produce is called the

answer

production possibilities frontier

question

when an economy grows, the curve shifts to the ___

answer

right

question

when an economy production capacity decreases, the economy slows and the curve shifts to the ___

answer

left

question

production possibilities curves can be used to determine the __ __ involved in making an economic decision

answer

opportunity costs

question

the structure of methods and principles that a society uses to produce and distribute goods and services

answer

economic system

question

the income people receive in return for supplying factors of production

answer

factor payment

question

the amount of money a business receives in excess of expenses

answer

profit

question

a set of government programs that protect people who face unfavorable economic conditions

answer

safety net

question

level of economic prosperity

answer

standard of living

question

the process of bringing new methods, products or ideas into use

answer

innovation

question

an economic system that relies on habit, custom, or ritual to decide the three key economic questions

answer

traditional economy

question

what goods and services should be produced? each society must decide what to produce in order to satisfy the __ and __ of its ppl bc resources are __, each decision that a society makes about what to produce comes at an opportunity cost

answer

wants, needs, limited

question

how should goods and services be produced? as a society decides how to produce its goods and services, it must consider how best to use its __, __ and __

answer

land, labor, capital

question

who consumes goods and services? this is largely determined by how societies distribute __

answer

income

question

who consumes goods and services? through __ __ , including __, societies can determine who will be the consumers of the goods and services produced

answer

factor payments, profits

question

the oldest and simplest economic system is known as __ __

answer

traditional economy

question

rely on habit, custom or ritual and revolve around the family. there is little room for innovation or change

answer

traditional economies

question

some societies limit the economic___ of its ppl

answer

freedoms

question

economic systems also strive to achieve a certain degree of economic __

answer

security

question

if a society can accurately assess what to produce, it increases economic __

answer

efficiency

question

economic __ is another economic goal that is defined differently in different societies. each society must decide how to divide its economic pie

answer

equity

question

a society also strives for economic __. a nations economy must grow so i can provide jobs for the new ppl joing the workforce

answer

growth

question

: any arrangement that allows buyers and sellers to exchange things

answer

market

question

the concentration of the productive efforts of individuals and businesses on a limited number of activities

answer

specialization

question

an economic system in which decisions on the three key economic questions are based on the voluntary exchange in markets

answer

free market economy

question

a person or group living in a single residence

answer

household

question

an organization that uses resources to produce a product or service, which it then sells

answer

firm

question

the arena of exchange in which firms purchase the factors of production from households

answer

factor market

question

the arena of exchange in which households purchase goods and services from firms

answer

product market

question

an individual's own personal gain

answer

self interest

question

the hope of reward or fear of penalty that encourages a person to behave a certain way*

answer

incentive

question

the struggle among producers for the dollars of consumers

answer

competition

question

a term coined by Adam Smith to describe the self-regulating nature of the marketplace

answer

invisible hand

question

the powers of consumers to decide what gets produced

answer

consumer sovereignty

question

characteristics of a free market economy: -__ and ___ __ and __ __ _-__ ___ economic freedom, effieciency and equity

answer

household, firms, factors, product markets, self interest, competition

question

_ __ is the motivating force in the free market

answer

self interest

question

despite the advantages of a free market economy, no country today operates under a pure, unregulated __ __

answer

free market

question

an economic system in which the government makes all decisions on the three key economic questions

answer

centrally planned economy

question

another name fora centrally planned economy

answer

command economy

question

a range of economic and political systems based on the belief that wealth should be distributed evenly throughout society

answer

socialism

question

a political system in which the gov owns and controls all resources and means of production and makes all economic decisions

answer

communism

question

describing a form of gov which limits individual freedoms and requires strict obedience from their citizens

answer

authoritarian

question

in a centrally planned economy( command economy), the gov owns both __ and __. the gov also controls where ppl work and what they are ___

answer

land, capital, paid

question

the doctrine that government generally should not intervene in the marketplace

answer

laissez faire

question

property that is owned by individuals or companies, not by the government or people as a whole

answer

private property

question

a market-based economic system in which the government is involved to some extent

answer

mixed economy

question

a period of change in which a nation moves from one economic system to another

answer

economic transition

question

the process of selling businesses or services operated by the government to individual investors, and then allowing them to compete in the marketplace

answer

privatization

question

an economic system in which investments in firms are made in a free market by private decision rather than by state control

answer

free enterprise system

question

the american government intervenes i the economy by: providing vital__ keeping __ promoting general __

answer

services, order, welfare(SOW)

question

from economics we learn that ppl have to make ___ when they are faced w limited ___

answer

choices, resources

question

all ppl have __, which are things that are necessary to survive

answer

needs

question

most ppl have ___, which are things that may improve their lives

answer

wants

question

physical things that ppl produce are ___

answer

goods

question

actions performed for a fee are ___

answer

services

question

limited resources are the cause of ___

answer

scarcity

question

a temporary low supply of an item is called a ___

answer

shortage

question

an ___ brings together the factors of production to make new or improved goods or services

answer

entrepreneur

question

natural resources such as oil and forests are included in the factor called __

answer

land

question

the work ppl do is called ___ while buildings and tools are ___ capital

answer

labor, physical

question

a workers skills are called __ capital

answer

human

question

give up one thing for another is called a ___

answer

trade off

question

the term 'guns or butter' refers to a trade off between military goods and ___ goods

answer

consumer

question

the cost of the next best choice in a trade off is called the

answer

opportunity cost

question

when you decide how much or more or less to do, u are -

answer

thinking at the margin

question

to do a cost/benefit analysis, u must weigh the __ __ against the __ __

answer

marginal cost, marginal benefit

question

a graph that shows alternative ways to sue resources is called a __ ___ __

answer

production possibilities curve

question

___ means that an economy is using its resources in a way that produces the most goods and services

answer

efficiency

question

when resources are available but not being used, an economy experiences ___

answer

underutilization

question

the law of increasing costs say that opportunity costs increase when ___ switches from one item to another

answer

production

question

the answer to the question " what should be __" tells where resources of a country will be used

answer

produced

question

the question " ___ should things be produced " shows how ppl will use capital

answer

how

question

the third question a society must answer is, " who should ___ what is produced "

answer

consume

question

when the standard of living is improving, the countrys economy is ___

answer

growing

question

economic ___ means a society doesnt waste its resources

answer

efficiency

question

americans have economic ___ ans so can choose their own jobs

answer

freedom

question

when a country tries to even out what its workers earn, it creates economic __, or fairness

answer

equity

question

a __ economics system is based on what the country has done in the past

answer

traditional

question

buyers and sellers have the freedom to make a ___ exchange or willing transfer

answer

voluntary

question

___, or contest(struggle) between firms, helps keeps prices low

answer

competition

question

lower prices provide consumers w an ___ to spend money

answer

incentive

question

advantages of free market economies include: changing what is ___ when conditions change, ___ freedom, and ___ leading to economic growth

answer

produced, economic, competition

question

the __ decides the answers to 3 basic economic questions

answer

government

question

command economies are found in 2 political economic systems known as __ and ___

answer

socialism, communism

question

bc there is little ___ there is little economic growth

answer

innovation

question

both ___ and ___ make economic decisions

answer

riddles, profit

question

ppl who believe in laissez faire dont want the __ __ __ to make economic decisions

answer

standard of living

question

the US has a __ __ enterprise system, where most investment decisions are made by ___

answer

safety net, incentive

question

the term 'guns or butter' refers to a trade off between military goods and ___ goods

answer

consumer

question

the cost of the next best choice in a trade off is called the

answer

opportunity cost

question

when you decide how much or more or less to do, u are -

answer

thinking at the margin

question

the term 'guns or butter' refers to a trade off between military goods and ___ goods

answer

consumer

question

the cost of the next best choice in a trade off is called the

answer

opportunity cost

question

when you decide how much or more or less to do, u are -

answer

thinking at the margin

question

the term 'guns or butter' refers to a trade off between military goods and ___ goods

answer

consumer

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