Econ U1ch. 1 Scarcity & Desc. Making

Businesses always have some sort in Incentive in their production. What is an Incentive?

• Tools and Equipment that help the business produce what they sell.

• Need

• A Reason

• Who the business is creating their product for.

What is "Opportunity Cost"

• Tangible commodity

• Cost of next best alternative

• Sum of economic products

• Work performed for someone

Which Factor of Production is described here: Tools, equipment, and factories used in production

• Land

• Labor

• Capital

• Entrepreneurship

What is a "Want"

• Means of expressing a need

• Requirement for survival

• People with all their efforts, abilities and skills

• "Gifts of nature”, deserts, forests, minerals, cattle, whale

Which Factor of Production is described here: Risk-taker in search of profits

• Land

• Labor

• Capital

• Entrepreneurship

Which of these is NOT one of the Basic Economic Questions

• "What to produce"

• "For whom to produce"

• "Entrepreneurship"

• "How to produce"

Which Factor of Production is described here: People with all their efforts, abilities and skills

• Land

• Labor

• Capital

• Entrepreneurship

What is a Need?

• Alternative choices

• Means of expressing need

• Quality of life based on ownership of necessities

• Requirement for survival

What is a "Tradeoff"

• Work performed for someone

• Any alternative choice

• Cost of the next best alternative

• Item with worth that can be expressed in $$

What does "TINSTAAFL" stand for?

• Nothing important

• Wealth

• There is no such thing as a free lunch.

• Gross Domestic Product