Economics '12 Chapter 1 Section 1 And 2 Quiz

Front 1

fundamental economic problem--results from scarce resources and unlimited wants

Back 1

scarcity

Front 2

study of how people satisfy seemingly wants with the careful use of scarce resources

Back 2

economics

Front 3

basic requirement for survival--food, clothing, shelter

Back 3

need

Front 4

way of expressing/communicating a need, broader classification than needs

Back 4

want

Front 5

productive resources that make up 4 categories of land, capital, labor, and entrepreneur

Back 5

factors of production

Front 6

natural resources ("gifts of nature") that were created by human effort

Back 6

land

Front 7

tools, equipment, and factories used in production of goods and services

Back 7

capital

Front 8

Money used to buy the tools and equipment used in production

Back 8

financial capital

Front 9

people with all their abilities/efforts--does not include the entrepreneur

Back 9

labor

Front 10

risk-taking individual in search of profits

Back 10

entrepreneur

Front 11

process of creating goods and services with the combined use of land, capital, labor, and entrepreneur

Back 11

production

Front 12

dollar value of all final goods, services, structures in year period

Back 12

Gross Domestic Product (GDP)

Front 13

good or service that is useful, relatively scarce, and transferrable to others

Back 13

economic product

Front 14

tangible economic product--used to satisfy wants/needs

Back 14

good

Front 15

good intended for final use by consumers rather than business

Back 15

consumer good

Front 16

tool, equipment, or other manufactured good used to produce other goods/services

Back 16

capital good

Front 17

work/labor performed for someone
i.e. haircuts, home repairs, forms of entertainment

Back 17

service

Front 18

worth of a good or service as determined by the market

Back 18

value

Front 19

apparent contradiction between high value of nonessentials and low value of essentials

Back 19

paradox of value

Front 20

ability or capacity of a good or service to be useful or give satisfaction

Back 20

utility

Front 21

sum of tangible economic goods that are scarce, useful, and transferable

Back 21

wealth

Front 22

meeting place/mechanism allowing buyers and sellers of economic product come together

Back 22

market

Front 23

market where productive resources are bought and sold

Back 23

factor market

Front 24

market where goods and services are offered for sale

Back 24

product market

Front 25

sustained period during which a nation's total output of goods and services increases

Back 25

economic growth

Front 26

degree to which productive resources are used efficiently-labor, all factors

Back 26

productivity

Front 27

division of work into a number of separate tasks to be performed by different workers

Back 27

division of labor

Front 28

assignment of tasks so that each worker performs fewer function more frequently

Back 28

specialization

Front 29

sum of people's skills, abilities, health, and motivation

Back 29

human capital

Front 30

economic activities in one part of the country or world affect what happens elsewhere

Back 30

economic interdependence

Front 31

alternative that must be given up when one is chosen rather than another

Back 31

trade-offs

Front 32

cost of the next best alternative use of money, time, or resources when one choice is made rather than another

Back 32

opportunity costs

Front 33

diagram representing maximum combinations of goods and/or services an economy

Back 33

production possibilities frontier

Front 34

way of thinking that compose the cost of an action to its benefits

Back 34

cost-benefit analysis

Front 35

market economy in which privately owned businesses have freedom to operate for a profit with limited government intervention

Back 35

free enterprise economy

Front 36

quality of life based on ownership of necessities and luxuries that make life easier

Back 36

standard of living