Econ Final Study Guide

When consumers want more of an item that producers will offer at a particular price.

• Goods
• Shortage
• Scarcity
• Services

The paid effort that a person devotes to a task

• Services
• Human Capital
• Land
• Labor

Physical objects such as baseballs and umbrellas.

• Human captial
• Services
• Goods
• Land

The study of how people make decisions to satisfy their needs and wants

• Captial
• Services
• Economics
• Labor

Natural resources used to produce goods and services.

• Land
• Labor
• Captial
• Services

Which of the following is an example of using physical capital to save time and money.

• Hiring more workers
• Expanding a factory
• Switching from oil to coal
• Lowering workers' wages

What is the difference between a shortage and scarcity?

• A shortage can be temporary or long-term, but scarcity always exists.
• A shortage results from rising prices; scarcity results from falling prices.
• A shortage is a lack of all goods and services; scarcity concerns one item.
• There is no real difference between a shrotage adn scarcity.

Which of the following are Factors of Production?

• Capital and Land
• Scarcity & Shortages
• Technology & Productivity
• Economics and Business decisions

The next best alternative given up when a decision is made.

• Opportunity Cost
• Thinking at the Margin
• Trade-off
• Cost/Benefit Analysis

What does the economic concept of "guns vs. butter" mean?

• People choose between guns and food
• Government must decide to make military or consumer goods.
• Companies make guns and butter
• Government can buy unlimited numbers of military and consumer goods.