Economics Chapter 1 – Flashcards
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The pleasure, satisfaction, or happiness obtained from consuming a good or service is known as (One Word)
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Utility
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The need to make choices because economic wants exceed economic means, most likely describes:
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The Economizing Problem
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_________ is the discipline of economics concerned with individual units such as households, firms and government.
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Macroeconomics
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The four general categories of economic resources are:
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Land, Capital, Labor, and Entrepreneurial Ability.
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A ____ ____ ____ list the different combinations of two products that can be produced with a specific set of resources, assuming full employment.
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Production Possibilities Table
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Due to scarce resources, every individual, whether rich or poor, is faced with an _______ cost when choosing to produce or consume more of one good over another.
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Opportunity
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A production possibilities curve "Implies" the attainable combination:
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of many goods that can be produced given a specific set of resources.
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Like the physical and life sciences, as well as other social sciences, economics relies on the ______ method.
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Scientific
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What would enable increases in production through increases in the quality of the factors of production?
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Research and Development Employee Training
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______ economic resources means limited goods and services.
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Scarce
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Everyone, even the very wealthy, have a _____ amount of income.
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Limited
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The law of increasing ____ ____ states that as production of a particular good increases, the cost of producing an additional unit rises.
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Opportunity Costs
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Specializing and participating in international trade allows an economy to:
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Increase the quantities of capital and consumer goods available to society. Circumvent the output limits imposed by its own production possibilities curve.
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In addition to entrepreneurship, the resource of _____ consists of the physical actions and mental activities that people contribute to the production of goods and services.
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Labor
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Entrepreneurial ability as well as human ability is an economic _____
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Resource
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For economists, _____ goods includes all manufactured aids used in producing consumer goods and services.
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Capital
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What is defined as "land" to an economists?
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Forests, Oil and Mineral deposits, water, arable land, sunlight
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The situation where one things has to be given up in order to have some other item is called a:
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Trade-Off
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All natural, human, and manufactured good that go into the production of goods and services are considered society's ____ economic resources.
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Scarce
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The function of an entrepreneur is:
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To produce new products To combine scarce resources and produce a good or services
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In economics, investment describes spending:
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That pays for the production and accumulation of capital goods.
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Economics assumes that human behavior reflects "____ self interest."
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Rational
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People desire goods and services that provide maximum utility. In fact, our desires or wants are:
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UNLIMITED AND INSATIABLE
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Advances in production _____ allow society to produce more goods with available resources.
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Technology
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