Intro. to Economics

Front

The study of how individuals and societies make other goods and services

Back

Economics

Answer explanation

Economics is the study of how individuals and societies produce, distribute, and consume goods and services. It examines decision-making processes and resource allocation, making it the correct answer.

Front

Human effort toward producing goods and services:

Back

labor

Answer explanation

Labor refers to the human effort used in the production of goods and services. It encompasses the physical and mental work that individuals contribute, making it the correct choice for this question.

Front

Previously manufactured goods used to make other goods and services:

Back

capital

Answer explanation

Capital includes man-made items like machinery, tools, and equipment that help produce other goods and services. Unlike land or labor, which represent natural resources and human effort, capital is an essential resource created by people to enhance productivity in the production process

Front

Which term describes advancements in knowledge that lead to new and improved goods, services, and more efficient production methods?

Back

technology

Answer explanation

The phrase describes how advancements in knowledge lead to new and improved goods and services, which is the essence of technology. Technology encompasses innovations that enhance production methods and product quality.

Front

When individuals take risks to create new products and launch businesses with the goal of making a profit

Back

entrepreneurship

Answer explanation

The correct answer is entrepreneurship, as it refers to the process of taking risks to create new products and businesses for profit. This distinguishes it from land, labor, and capital, which are resources used in production.

Front

Basic economic problem that results from a combination of limited resources.

Back

scarcity

Answer explanation

The basic economic problem of scarcity arises from the fact that resources are limited while human wants are unlimited. This makes scarcity the correct answer, as it directly addresses the issue of resource limitations.

Front

Resources of land, labor, capital, and entrepreneurship used to produce goods and services, refers to:

Back

factors of production

Answer explanation

The term 'factors of production' refers to the resources of land, labor, capital, and entrepreneurship used to produce goods and services, making it the correct choice for this question.

Front

Which term refers to natural resources, such as water, forests, and mineral deposits? Options: land, labor, capital, entrepreneurship

Back

land

Answer explanation

The term 'land' encompasses natural resources, surface land, and water, making it the correct choice. 'Labor', 'capital', and 'entrepreneurship' refer to different economic factors and do not directly relate to natural resources.

Front

What term describes giving up one good or service to obtain or produce another?

Back

trade off

Answer explanation

The term 'trade off' refers to sacrificing one good or service to obtain another. It highlights the choices made when resources are limited, making it the correct answer in this context.

Front

The term for the value of the next best alternative that was given up.

Back

opportunity cost

Answer explanation

The opportunity cost is the value of the next best alternative that is forgone when a choice is made. It represents what you give up to pursue a particular option, making it the correct answer.