Chapter 1 Economics Review

All economic systems must answer the basic economic questions of: what to produce, how to produce, and when to produce goods and services.

• True
• False

Every choice has both an opportunity benefit and an opportunity cost.

• True
• False

? is the gain received by making a particular choice.

• Psychic Income
• Opportunity Benefit
• Opportunity Cost
• None of these

Limited resources available to satisfy unlimited wants & needs create

• theories
• allocation
• scarcity
• opportunity benefits

things you can see and touch

• Services

• Mass Production

• Goods

• Anti-Trust Laws

Things that satisfy our wants through the efforts of other people or equipment.

• Goods

• Services

• Natural Resources

• Products

Raw materials supplied by nature

• Labor

• Human Resources

• Capital Resources

• Natural Resources

People who work to produce goods and services

• Human Resources (Labor)

• Natural Resources

• Capital Resources

• Capital

Tools, equipment, and buildings used in producing goods and services.

• Labor

• Human Resources

• Capital Resources (Capital)

• Natural Resources

The basic economic problem that arises because people have unlimited wants but resources are limited. The problem business, government, and individuals face.

• Unemployment

• Wants

• Needs

• Scarcity