Ch 1 What is Economics? sec. 1 and sec 2 of book

These are things that are considered essential for survival

• wants

• needs

• human capital

• scarcity

Is this a true or false statement according to economists? "I need a vacation."

• True

• False

This is the study of how people seek to satisfy their needs and wants by making choices

• scarcity

• economics

• shortage

• command economy

What is an example of a service?

This term "always exists" so therefore we need to make choices.

• shortage

• scarcity

• labor

• needs

True or false: Scarcity means the same thing as shortage.

• True

• False

Which of the following are considered factors of production? Check all correct responses.

• land

• labor

• human capital

• physical capital

• entrepreneur

Examples of this factor of production include water, coal, iron

• land

• labor

• physical capital

• human capital

Which of the following are examples of human capital? Choose the correct responses

• knowledge

• buildings

• work experience

• effort that a person devotes to a task

These are all the alternatives that we give up when me make a decision/choice

• labor

• trade offs

• opportunity cost

• thinking at the margin