Unit 1 Intro. to Economics

Economics is

• the study of how people produce distribute and use goods and services.
• the study of producers and consumers.
• the study of the United States.
• the study of how economists do their jobs.

There are 3 things that everyone does with their money.

• spend, save, share

• spend, hide, loan

• hide, share, donate

• share donate, spend

This factor of production is the ability of individuals to start a new business

• capital

• entrepreneurship

• technology

• land

Land is

• objects that are used to make a product
• natural resouces like water, oil and cattle
• natural resources like cars, factories
• natural resources like a workers education and experience

This economic system allows citizens to own businesses and compete for profit.

• open economy

• market economy

• command economy

• traditional economy

Opportunity cost is

• the same as never having enough of something.
• the next best choice that you give up in order to do something else
• factors of production 
• country's way of using limited resources

Tools and machinery are part of this factor of production

• labor

• land

• capital

• entrpreneurship

Scarcity and shortages have the same economic meaning?

• True
• False

He is considered the father of economics

• Adam Smith

• Adam West

• Adam Thomas

• John Adam

The three criteria that must be present for scarcity to exists are

• vast quantity, unlimited value and disirable
   
• limited quantity, more than one use
• desirability, limited quantity and more than one use or value
• more than one use, unlimited quantity and desirable