Economics – Chapter 1 Answers – Flashcards
Unlock all answers in this set
Unlock answersquestion
Ordinary business of life
answer
Economist Alfred Marshall stated that economics is about the
question
How people choose to satisfy their wants.
answer
Ordinary business is
question
Choice making - Personal, business or government
answer
What is fundmental in economics?
question
Social science that studies how people, acting individually and in groups, decide to use scarce resources to satisfy their wants
answer
What is economics?
question
Because it involves the study of people
answer
Why is economics considered a social science?
question
Because it uses many tools of analysis to explain how the economy works
answer
Why is economics considered a science?
question
How people choose to satisfy their wants and why they make the decision they do.
answer
What do we consider as an ongoing concern of economics?
question
If there were a magic genie that can give you anything you want forever.
answer
At what scenario would study of economics not exist?
question
Food, clothing and housing. Anything that occurs over and over.
answer
What is physical want?
question
As you grow older the what you eat and what you wear changes.
answer
What changes with physical wants?
question
The wants that are not necessary to exist but makes people feel better or happier.
answer
What is psychological want?
question
Wanting to wear designer clothes or owning a special car.
answer
Provide an example of psychological want?
question
When we want more and more.
answer
How do physical and psychological wants get mixed up in our minds?
question
The steps involved in producing what a "human want"
answer
What is the "Want Satisfaction Chain"?
question
1. Human Want 2. Need 3. Production 4. Distribution 5. Consumption 6. Satisfaction
answer
What are the steps in "Want Satisfaction Chain"?
question
The process that combines economic resources so the result is a good or service.
answer
What is production?
question
the process of getting a product or service to consumers.
answer
what is distribution?
question
Using a product or service.
answer
What is consumption?
question
Human wants
answer
What begins the "Want satisfacton chain"
question
Consumption
answer
What ends the "Want satisfaction chain"?
question
Resources
answer
What is the basic element used to produce goods and services?
question
Natural, human and capital
answer
What are the 3 types of productive resource?
question
unaltered gifts of nature such as oil, minerals, timber and fresh water.
answer
What are natural resources?
question
Land
answer
What are natural resources also known as?
question
the physical and mental effort people use to create the goods
answer
What are human resources?
question
Labor
answer
What are human resources also known as?
question
The buildings, tools and machines people use to create goods.
answer
What are capital resources?
question
the truck that delivers the clothes to the store.
answer
Give an example of capital resource?
question
Capital
answer
What type of resources would this be - A computer used to deliver information
question
Labor
answer
What type of resource would this be - A programmer who creates a software.
question
Land
answer
What type of resource would this be - The wood used to build houses
question
Factors of production
answer
What do economist call land, labor and capital?
question
Entrepreneurship
answer
What do economists call the 4th factor of production?
question
The skills needed to start and operate a business.
answer
What is entrepreneurship?
question
Imagination, innovation and management
answer
What are the type of skills needed for an entrepreneur
question
Entrepeneurs
answer
_____________ is important to the success of a business and the US Economy.
question
The gap between what people want and the resources available to produce it.
answer
What is gap scarcity?
question
The inequality between want and resource available to satisfy them.
answer
What is scarcity?
question
SCARCITY = WANTS > AVAILABLE RESOURCE
answer
What is the formula for Scarcity?
question
meet the need for it.
answer
A resource is scarce only when there is not enough to
question
it is NOT scarce
answer
If small amount of resource is available but it is not wanted then......
question
the highest valued alternative given up as a result of making a choice.
answer
what is opportunity cost?
question
The family cannot use the trip money to purchase TV.
answer
Example of opportunity cost: If a family decides to go on trip but also need flat screen tv.
question
you cannot use the work time to study.
answer
Example of opportunity cost: if you work after school and have a test to study
question
Economics is a method, an apparatus of the mind, a technique of thinking.
answer
What did John Maynard Keynes said about economics?
question
Choice-making
answer
_________is the initial step in explaining much of human behavior and in understanding of economics.
question
scarcity
answer
What forces people of "choice-making"?
