Unit 1 and 2 Reivew

Economics may best be defined as a _____________

• study of efforts to satisfy seemingly unlimited wants with scarce resources.

• scientific study of supply and demand.

• limited description of economic activities.

• branch of Sociology.

A basic requirement for survival is a ____________

• want

• opportunity cost

• need

• paradox of value

Employment in service occupations refers to _______

• ownership of the factors of production

• people who perform work for other people

• the manufacture of goods

• workers on the assembly line

Manufactured goods needed to produce other goods are called______

• consumer goods

• payroll expenses

• durable goods

• capital goods

A factor of production is _____________

• a service

• capital

• need

• cost

For the consumer, the most important reason for a purchase is its ___

• entertainment value

• color

• utility

• price

The 3 Basic Questions are ________

• What? Where? and When?

• What? How? and When?

• Why? What? and How?

• What? How? and For Whom?

Land, Labor, Capital and Entrepreneurship are ________

• factors of production

• result of production

• basis of employment

• results of supply and demand

The study of the careful use of relatively scarce resources is a definition of __

• factor markets

• consumerism

• economics

• production

What is the fundamental problem of economics?

• scarcity

• capital

• the factors of production

• labor