Economics Review

What is a natural resource?

• Items made by people

• People who provide a service

• Anything we buy

• A resource that is directly from nature

What is a human resource?

• Resources straight from nature

• Resources made by people

• People who work to produce goods and services

• Any item we purchase

What is a capital resource?

• Resources straight from nature

• Resources made by people

• People who work to produce goods and services

• Any item we purchase

What is a good?

• Resources straight from nature

• Resources made by people

• People who work to produce goods and services

• Any item we purchase

Why does specialization encourage trade?

• People want goods and services they do not have.

• The price of goods and services decreases with specialization.

• Specialization encourages people to travel and spend money.

• Specialization provides different jobs in a community.

Why do we make economic choices?

• Because we want to.

• Because it's fun

• Because we can't always have everything we want.

• Because we have to

What is a service?

• An item we buy

• An item directly from nature

• Something we pay someone to do for us

• An item made by other people

If I decide to eat a cookie instead of a brownie, what is my opportunity cost?

• The cookie

• The brownie

• Nothing

• The cookie and the brownie