Business Economics Chapter 1 Review

_ is the study of how individuals and societies satisfy their unlimited wants with limited resources

• Opportunity Cost

• Cost-Benefit Analysis

• Economics

• Scarcity

_ is the situation that exists because wants are unlimited and resources are limited.

• Scarcity

• Economics

• PPC

• Water-Diamond Paradox

A _ is a physical object that can be purchased, such as food, clothing, and furniture. A _ is work that one person performs for another for payment.

• Service; Good

• Good; Service

• Consumer; Producer

• Producer; Consumer

• Cost; Benefit

Which of the following is NOT a question that results from scarcity?

• What will be produced?

• Where will it be produced?

• How will it be produced?

• For whom will it be produced?

A person who buys goods or services for personal use is called a _. Someone who makes goods or provides services is called a _.

• Service; Good

• Good; Service

• Consumer; Producer

• Producer; Consumer

• Cost; Benefit

Which factor of production is this? All the human time, effort, and talent that go into the making of products.

• Land

• Labor

• Capital

• Entrepreneurship

• Quality

Select ALL of the factors of production:

• Land

• Quality

• Labor

• Revenue

• Capital

To _ is to make decisions according to what you believe is the best combination of costs and benefits.

• Cost-Benefit Analysis

• Diversify

• Economize

• Spectate

_ is the benefit or satisfaction gained from the use of a good or service.

• Utility

• Incentives

• Income

• Cost-Benefit Analysis

_ are benefits offered to encourage people to act in certain ways.

• Utilities

• Incentives

• Services

• Bonuses