Intro to Economics U1 A

Economics is the study of how people...

• Calculate their income tax

• Choose from limited resources to meet their unlimited wants and needs

• Respond to war and drought

• Gain knowledge and skills from study and time

Which of the following most directly contributes to why people must make choices when satisfying their wants and needs?

• Scarcity

• Factors of Production

• Unlimited Resources

• Business Structure

House cleaning, Haircuts and car repairs are examples of

• Resources used in an economy

• Services performed in an economy

• Opportunity costs in an economy

• Goods produced in an economy

The resources used to make all goods and services are

• Factors of production

• Production trade-offs

• Opportunity costs

• Production possibilities

Bill Gates

Walt Disney

Henry Ford

Steve Jobs

Thomas Edison

The people listed above are similar because they are all

• economists

• human capital

• physical capital

• entrepreneurs

Scarcity and choice are economic problems faced by every society because

• shortages occur due to extreme weather conditions

• resources should be equally distributed amongst all members of society

• peoples desires often exceed their wants

• individuals do not know how to rationally spend money

Why do all economies need some type of government intervention?

• to ensure government freedom to tax as necessary

• to fulfill the needs of the military

• to control factors of production

• provide for things that the marketplace does not address.

What do households provide firms in the product market?

• Labor

• Land

• Capital

• Entrepreneurship

What do firms/businesses provide households in the factor market?

• Capital

• Goods

• Services

• Entrepreneurship

What is American governments role within the economy?

• Requiring companies to disclose information to consumers

• Choosing which companies to allow and help them

• Protecting competition, providing vital services, and promoting the general welfare