Chapter 1 Test- Econ

Front 1

Non-Durable goods:

Back 1

Generally last less than three years under normal usage. Food, writing paper, and clothes are examples.

Front 2

Land:

Back 2

The "gift of nature". This includes fertile soil, mineral deposits, fields, climate, and anything else that can't be produced by mankind.

Front 3

Paradox of Value:

Back 3

Diamonds vs water. Water is a requirement, diamonds are a luxury. When something is scarce it doesn't always mean its' a need. Diamonds are scarce but people need water.

Front 4

4 Factors of Production:

Back 4

1) Land

2) Capital- Good & Financial

3) Labor

4) Entrepreneurs

Front 5

Economic Products:

Back 5

An activity carried out under the control and responsibility of an institutional unit that uses inputs of labour, capital, and goods and services to produce outputs of goods or services.

Front 6

Wealth of a Nation:

Back 6

accumulation of products/goods that are tangible, scarce, useful, and transferable.

Front 7

Division of Labor:

Back 7

takes place when work is arranged so that individual workers do fewer tasks than before

Front 8

Opportunity Cost:

Back 8

what we give up in place of something else is the opportunity cost.

Front 9

Production Possibilities Frontier:

Back 9

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.)

Front 10

Capital Goods:

Back 10

tools, equipment, machinery, and factories.

Front 11

Decision Making Grids:

Back 11

a way to weigh the pros and cons.

Front 12

Gross Domestic Product (GDP):

Back 12

Dollar value of all final goods and services in the country.

Front 13

Capital (goods and financial):

Back 13

wealth in the form of money or other assets owned by a person organization or available or contributed for a particular purpose such as starting a company or investing.

Front 14

Economic Interdependence:

Back 14

We rely on others, and others rely on us to provide the goods and services that we consume.

Front 15

3 Basic Economic Questions:

Back 15

What to produce? For whom to produce? How will they get distributed?

Front 16

Why Study Economics, What is Economics:

Back 16

the wealth and resources of a country or region, especially in terms of the production and consumption of goods and services. By studying economic it can help better our production and lower the price of goods.

Front 17

Cost for Everything We do:

Back 17

Opportunity Cost

Front 18

Trade Off:

Back 18

an item you give up in order to get another.

Front 19

Value:

Back 19

scarcity and utility (or desirability) are needed to give value.

Front 20

Scarcity:

Back 20

resources such as time, money, goods, and services are all limited.

Front 21

Wealth:

Back 21

accumulation of products/goods that are tangible, scarce, useful, and transferable.

Front 22

Standard Of Living:

Back 22

the average way a group of people live. The standard of living in the United States is different from the standard of living in Haiti.

Front 23

Good:

Back 23

item that is economically useful or satisfies a want.

Front 24

Consumption:

Back 24

The process of using up goods and services in order to satisfy wants and needs.

Front 25

Need:

Back 25

something you can’t live without.

Front 26

Want:

Back 26

something you can live without and don’t necessarily need.

Front 27

Production:

Back 27

the act of making a product.

Front 28

Free Enterprise Economy:

Back 28

an economic system where few restrictions are placed on business activities and ownership.