Econ Chapter 1 Review

Front

What term describes the limited nature of society's resources?

Back

Scarcity

Front

Which term refers to the study of how people use resources to satisfy their wants?

Back

Economics

Front

Which type of economics involves value judgments about what the economy should be like?

Back

Normative economics

Front

Which factor of production involves the risk-taking and innovation to bring the other factors together?

Back

Entrepreneurship

Front

What is the term for the concept of giving up one thing to get something else?

Back

Tradeoff

Front

Which analysis involves comparing the costs and benefits of a decision?

Back

Cost-benefit analysis

Front

What is something that motivates a person to take a particular course of action?

Back

Incentive

Front

Which principle states that every choice involves a cost?

Back

No free lunch principle

Front

What term refers to all of the possible resources involved in making a product or decision?

Back

Inputs

Front

What term refers to the gains received from a decision or action?

Back

Benefits