Ch.1 and 2 Econ

work that is performed for someone

• good
• service
• human capital
• market

location or other mechanism that allows buyers and sellers to exchange a certain economic product

• land
• capital
• market
• sservice

an item that is economically useful or satisfies an economic want

• good
• service
• need
• value

Diagram representing maximum combinations of goods and/or services an economy can produce when all   resources are fully employed

• cost-benefit analysis
• production possibilities frontier
• factors of production
• paradox of value

The study of economics is important because it enables us to _____

• increase consumption of consumer goods
• determine what goods ought to be produced
• become better decision makers
• describe our standard of living

What is the fundamental problem of economics? 

• scarcity
• the factors of production
• capital
• labor

Which of the following lists the four factors of production? 

• land, labor, wants, entrepreneurs 
• labor, needs, capital, entrepreneurs
• land, labor, capital, scarcity
•  land, labor, capital, entrepreneurs

Which of the following is NOT a basic economic question? 

• WHAT to produce 
• FOR WHOM to procue
• WHEN to produce
• HOW to produce

A factor of production that includes natural resources not created by humans

• land
• labor
• capital
• entrepreneur

The tools, equipment, machinery, and factories used in the production of goods and services

• labor
• factors of production
• specialization
• capital