Podcast
Questions and Answers
Which fundamental economic question deals with determining the mix and quantity of goods and services to produce?
Which fundamental economic question deals with determining the mix and quantity of goods and services to produce?
- What to produce? (correct)
- How to produce?
- For whom to produce?
- Where to produce?
Which of the following factors of production includes money, machines, and tools?
Which of the following factors of production includes money, machines, and tools?
- Capital (correct)
- Labor
- Entrepreneurship
- Land
What distinguishes economic products from other types of products?
What distinguishes economic products from other types of products?
- They have no utility or value.
- They are readily available in unlimited quantities.
- They are useful, scarce, and transferable. (correct)
- They are free and accessible to everyone.
Which scenario exemplifies a 'service' in economic terms?
Which scenario exemplifies a 'service' in economic terms?
Which type of good is directly used by individuals for their final consumption?
Which type of good is directly used by individuals for their final consumption?
Which concept describes the monetary worth of a product or service?
Which concept describes the monetary worth of a product or service?
What economic principle explains why essential items like water may be cheaper than non-essential items like diamonds?
What economic principle explains why essential items like water may be cheaper than non-essential items like diamonds?
Which economic term refers to the satisfaction a consumer derives from a good or service?
Which economic term refers to the satisfaction a consumer derives from a good or service?
What economic concept is best described as the accumulation of tangible resources?
What economic concept is best described as the accumulation of tangible resources?
What term describes an increase in a nation's total production of goods and services over time?
What term describes an increase in a nation's total production of goods and services over time?
How does the division of labor enhance productivity in an economy?
How does the division of labor enhance productivity in an economy?
Which economic concept is defined as the study of how societies allocate scarce resources to satisfy unlimited wants?
Which economic concept is defined as the study of how societies allocate scarce resources to satisfy unlimited wants?
What is considered the fundamental problem that economics seeks to address?
What is considered the fundamental problem that economics seeks to address?
How does scarcity influence economic decision-making?
How does scarcity influence economic decision-making?
Which of the following best describes the role of entrepreneurship as a factor of production?
Which of the following best describes the role of entrepreneurship as a factor of production?
Flashcards
Economic Questions
Economic Questions
Fundamental questions addressing what, how, and for whom to produce goods and services.
Factors of Production
Factors of Production
Resources used to produce goods and services, including land, labor, capital, and entrepreneurship.
Economic Products
Economic Products
Goods and services that are useful, scarce, and transferable, commanding a price due to their scarcity.
Services
Services
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Consumer Goods
Consumer Goods
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Capital Goods
Capital Goods
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Value
Value
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Paradox of Value
Paradox of Value
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Utility
Utility
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Wealth
Wealth
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Economic Growth
Economic Growth
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Division of Labor
Division of Labor
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Specialization
Specialization
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Economics
Economics
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Scarcity
Scarcity
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Study Notes
- Basic economic concepts involve understanding how societies address fundamental economic questions and manage resources.
- These concepts are relevant for introductory economics.
Economic Questions
- The economic questions are:
- What to Produce?
- How to Produce?
- Whom to Produce For?
Factors of Production
- These are resources used to produce goods and services.
- Land refers to any natural resource.
- Labor refers to workers.
- Capital includes money, machines, and tools.
- Entrepreneurship involves starting a business.
Economic Products
- Goods and services are useful, scarce, and transferable.
- These products command a price due to their scarcity.
Services
- Work performed by someone is called a service.
- Home repair, haircuts and concerts are examples of services.
Goods
- Consumer goods are for final use by individuals.
- Capital goods are used to produce other goods.
Value and Paradox of Value
- Value is the worth in dollars and cents.
- The paradox of value explains that necessary items may have low value, while unneeded items may have high value.
Utility
- Utility refers to satisfaction.
Wealth
- Wealth is the accumulation of resources and tangible items within the economy.
Economic Growth
- Economic growth occurs when a nation's total output increases over time.
Division of Labor
- Division of labor involves dividing work so individual workers do fewer tasks.
- Specialization occurs when workers become more efficient at tasks they repeatedly perform.
Economics
- Economics is a social science that studies the optimum allocation of scarce human and non-human resources over time among alternative uses in order to satisfy unlimited human wants and desires.
- Scarcity is the root problem that economics deals with.
Scarcity
- Scarcity is created from unlimited wants and needs with limited resources.
- It is the basic, biggest, and fundamental economic problem.
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