Economics Study Guide

Front

Scarcity is considered the 'fundamental economic problem' because:

Back

It means resources are limited and cannot satisfy all human wants.

Front

Which of the following lists the three Basic Economic Questions and their meanings?

Back

What to produce, How to produce, For whom to produce; They determine what goods are made, how they are made, and who gets them.

Front

The factors of production cause producers to make production decisions by:

Back

Providing the resources needed for goods and services

Front

What is the difference between trade-offs and opportunity cost?

Back

Trade-offs involve choosing between alternatives, while opportunity cost is the value of the next best alternative forgone.

Front

Scarcity

Back

Scarcity refers to the limited nature of resources. It is significant because it forces individuals and societies to make choices about how to allocate resources.

Front

Goods

Back

Goods are physical items that satisfy human wants and needs. They are significant because they are produced and consumed in the economy.

Front

Services

Back

Services are activities or actions that are performed for others. They are significant because they fulfill needs and wants without producing tangible products.

Front

Utility

Back

Utility is the satisfaction or benefit derived from consuming a good or service. It is significant because it influences consumer choices and demand.

Front

Factors of Production

Back

Factors of production are the resources used to produce goods and services: land, labor, capital, and entrepreneurship. They are significant because they are essential inputs in the production process.

Front

Land

Back

Land refers to natural resources used in production. It is significant because it provides the raw materials needed for goods and services.