Unit 1 Vocab Quiz

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

What is scarcity?

• The study of how people choose to use limited resources
• The problem of unlimited wants and limited resources
• The problem of limited wants and unlimited resources
• The problem of having too few options

cost of the next best alternative use of money, time, or resources when one choice is made rather than another

• Rational Decision-Making
• Opportunity Cost
• Production Possibilities Curve
• Marginal Cost

This is an economic situation related to opportunity cost in which one thing is given up in order to do something else.

• specialization
• division of labor
• scarcity
• trade offs

The potential that an investment will lose money.

• loss
• risk
• potential
• opportunity cost

Land, Labor, Capital, and Entrepreneurship 

• Diversification
• Deductions
• Portfolio
• Factors of Production 

People who pull together land labor and capital to produce new goods and services

• Workers
• Bosses
• Entrepreneurs 
• Investors

A tool or equipment used to produce other goods.

• capital good
• consumer good
• labor
• investment

This the term for a finished product used by an individual for personal use.

• capital
• capital good
• consumer good
• durable good

This is the process of separating the tasks in the the process of production and assigning different tasks to different workers.

• limited tasks
• efficient labor
• productive resources
• division of labor