Review Chapter 1 Economics

In economics, the value of the next best alternative is called _________.

• Scarcity
• Productivity
• Opprotunity Cost
• Supply and Demand

In economics, resources are: 

• Anything used to create something else
• The environment in general
• Specifically lumber and water
• Capital only

Resources (a.k.a. the factors of production are)

• Land and Labor
• Land and Capital 
• Entrepreneurship
• Land, Labor, Capital and Entrepreneurship

Workers

• Land
• Labor 
• Capital
• Entrepreneurship

Tools

• Land
• Labor 
• Capital
• Entrepreneurship

Raw materials (i.e. cotton, oil...etc.)

• Land
• Labor 
• Capital
• Entrepreneurship

The people who bring all the factors together to create something are practicing

• Land
• Labor 
• Capital
• Entrepreneurship

The study of economics is primarily concerned with:

• demonstrating that capitalistic economies are superior to socialistic economies. 
• determining the most equitable distribution of society's output.
• keeping private businesses from losing money.
• choices/decisions that are made due to lack of resources

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

How do you satisfy your unlimited wants in a world of limited resources?

• by making more money
• by making choices
• by stealing
• by setting a budget