Unit 1 Chapter 1 Review

Front

When marginal benefit is greater than the cost of a particular good/service, the ___________ should be obtained.

Back

marginal benefit

Front

If Dr. Hollar had three options for where to get lunch this weekend and she ranked them (1) Jersey Mikes, (2) Chipotle, and (3) Chick-fil-A, what is her opportunity cost of going to Jersey Mike's?

Back

Chipotle

Front

When conducting cost-benefit analysis, individuals consider and ask themselves... What is the durability of the good/service? What is the cost of the good/service? Will the good/service lead to other expenses?

Back

All three options.

Front

The capacity of a good/service to be useful is known as ___________.

Back

utility

Front

This condition results from a society not having enough resources to produce everything that people want.

Back

scarcity

Front

Tools, equipment, and machinery would fall under which of the Four Factors of Production?

Back

Capital

Front

Water, natural gas, and the soil on which a structure is built would all fall under which of the Four Factors of Production?

Back

Land

Front

When conducting marginal analysis, if you determine the marginal benefit of a desire good is ________ the marginal cost, the desired good is not worth the cost and should not be obtained.

Back

less than

Front

_____ are things that we buy or use, such as a television or car, while _____ are jobs and activities that are provided by people in an economy, such as an accounting or nursing.

Back

Goods; services

Front

The question, "Should our society direct most of its resources to the production of military equipment or to other items such as food, clothing, or housing?" asks the economic question....

Back

What good/service should we produce?