Economics Chapter 1: Test Flashcards

Condition of not having enough resources to satisfy wants.

The study of how people try to satisfy unlimited wants with limited resources.

Needs are required for living out day-to-day activities, whereas wants are not required.

<p>There Is No Such Thing As A Free Lunch; it is true because the money is always coming from somewhere.</p> Signup and view all the answers

<p>What to produce?; How to produce?; For whom?</p> Signup and view all the answers

<p>The people choose what to produce (Consumers).</p> Signup and view all the answers

<p>Companies choose the most efficient ways.</p> Signup and view all the answers

<p>Whoever has the ability to buy it, based on income.</p> Signup and view all the answers

<p>Land, Capital, Labor, Entrepreneurship.</p> Signup and view all the answers

<p>Any natural resource found in/on the land.</p> Signup and view all the answers

<p>Goods that are used to make other services.</p> Signup and view all the answers

<p>People to work to produce things.</p> Signup and view all the answers

<p>People to take risks with their money, in hopes of profit.</p> Signup and view all the answers

<p>The result of taking the factors and turning them into goods and services.</p> Signup and view all the answers

<p>Description, Analysis, Explanation, Prediction.</p> Signup and view all the answers

<p>The description of economic activity.</p> Signup and view all the answers

<p>Helps us to discover why things work, and how things happen.</p> Signup and view all the answers

<p>Understanding how and why things work in the economy, and sharing with others.</p> Signup and view all the answers

<p>Being able to know, or make an educated guess about how people's incomes are going to rise or fall in the future.</p> Signup and view all the answers

<p>Consumer, Capital, Durable, and Endurable.</p> Signup and view all the answers

<p>Intended for the final use of individuals.</p> Signup and view all the answers

<p>Manufactured goods that are used to produce other goods and services.</p> Signup and view all the answers

<p>Made to last and be used for an extended period.</p> Signup and view all the answers

<p>Perishable goods, not built to withstand extended time periods.</p> Signup and view all the answers

<p>Because you have to have a use for the item(s).</p> Signup and view all the answers

<p>Usefulness of an item(s).</p> Signup and view all the answers

<p>The situation where some necessities, such as water, have little monetary value.</p> Signup and view all the answers

<p>The accumulation of goods that are scarce, useful, and transferable.</p> Signup and view all the answers

<p>A place where people go to buy goods and services.</p> Signup and view all the answers

<p>Where productive resources are bought and sold; they center on businesses.</p> Signup and view all the answers

<p>Markets where goods and services are bought and sold; they center on goods and services.</p> Signup and view all the answers

<p>What you get out of what you put in; a measure of the amount of output produced by a given amount of inputs.</p> Signup and view all the answers

<p>Specialization and division of labor.</p> Signup and view all the answers

<p>You are improving workers' health, ability, motivation, and knowledge.</p> Signup and view all the answers

<p>Occurs when a nation's total output amount of a good or service grows, leading to higher living standards.</p> Signup and view all the answers

<p>The alternative choices people make in an economic decision.</p> Signup and view all the answers

<p>The cost of the next best alternative use of time, money, or resources.</p> Signup and view all the answers

<p>A diagram that illustrates opportunity cost - shows combinations of goods and services that can be produced.</p> Signup and view all the answers

<p>The economy pays a high cost.</p> Signup and view all the answers

<p>Additional; next things.</p> Signup and view all the answers

<p>By more resources, better technology, and increased productivity.</p> Signup and view all the answers

<p>Helps economists evaluate alternatives by looking at both choices, costs, and benefits.</p> Signup and view all the answers

<p>Helps economists test whether the cost of the decision was correct.</p> Signup and view all the answers

<p>Helps us know how the economy works on a daily basis.</p> Signup and view all the answers

<p>Where people and privately owned businesses make the decisions.</p> Signup and view all the answers

<p>The amount in international trade that is being done.</p> Signup and view all the answers

<p>Cheaper labor, cost companies more to make it on their own, opportunity cost, etc.</p> Signup and view all the answers

<p>Many products wouldn't be available on the world market, and U.S. would not have imports it needs.</p> Signup and view all the answers

<p>Whenever it is able to produce more of a given product than another nation.</p> Signup and view all the answers

<p>Because of comparative advantage.</p> Signup and view all the answers

<p>When it produces a product relatively more efficiently, determined by the opportunity cost.</p> Signup and view all the answers

<p>Each country has more of the good which produces it has a comparative advantage.</p> Signup and view all the answers

<p>A country should produce a product that has a low opportunity cost.</p> Signup and view all the answers