Economics Chapter 1

What is the definition of scarcity?

• work that is performed for someone

• not having enough resources to satisfy wants

• relying on others and others rely on us to provide goods and services we consume

What is the definition of economics?

• Adding up all the things you own that are scarce, useful, tangible and can be transferred to someone else

• Your choices when faced with an economic decision

• The study of how people try to solve the problem of having unlimited wants and limited resources

What is economic interdependence?

• The study of how people try to solve the problem of having unlimited wants and limited resources

• Relying on others and other rely on us to provide goods and services we consume

• the worth of something in dollars and cents

What is not an example of a service?

• A basketball hoop

• Having your car serviced

• Getting your haircut

What is a good?

• the ability of something to be useful

• work that is performed for someone

• an item that is tangible and satisfies an economic want

What is value?

• the worth of something in dollars and cents

• what you gave up when you made an economic decision

• the ability of something to be useful

What is the definition of trade-off?

• the worth of something in dollars and cents

• Your choices when faced with an economic decision

• the ability of something to be useful

What is the definition of opportunity cost?

• the worth of something in dollars and cents

• what you gave up when you made an economic decision

• work that is performed for someone

What are the three main questions of economics?

• What to produce? How to produce? For whom to produce?

• How are you? What are you doing? How can I help?

• How much does it cost? Is it useful? What is my opportunity cost?

What is the fundamental problem of economics?

• Unlimited wants, limited resources

• How do I buy things?

• Scarcity

• What are we gonna do with all this stuff?