Econ Unit 1

What is Economics?

• The study of how individuals and societies deal with scarcity.

• The idea that we have unlimited wants but limited resources.

• Study of the large economy as a whole or economic aggregates.

What does Scarcity mean?

• The study of how individuals and societies deal with scarcity.

• The idea that we have unlimited wants but limited resources.

• Any skill gained by a worker through education and experience

What is the definition of Microeconomics?

• The study of small economic units such as individuals, firms, and markets

• Any skill or knowledge gained by a worker through education and experice

• A situation in which the free-market system fails to satisfy society's wants.

What is the definition of Macroeconomics?

• Study of the large economy as a whole or economic aggregates.

• Any skill or knowledge gained by a worker through education and experice

• A situation in which the free-market system fails to satisfy society's wants.

What is the definition of Land as one of the factors of production?

• Any effort a person devotes to a task for which that person is paid

• Any human-made resource that is used to create other goods and services.

• All natural resources that are used to produce goods and services

What is Labor as one of the factors of production?

• Any effort a person devotes to a task for which that person is paid

• Any human-made resource that is used to create other goods and services.

• All natural resources that are used to produce goods and services

What is Physical Capital when we are talking about the factors of production?

• Ambitious leaders that combine the other factors of producation to create goods and services.

• Any effort a person devotes to a task for which that person is paid

• Any human-made resource that is used to create other goods and services.

What is Human Capital?

• Any effort a person devotes to a task for which that person is paid

• Any human-made resource that is used to create other goods and services.

• Any skill or knowledge gained by a worker through education and experice

Who is an Entrepreneur?

• Ambitious leaders that combine the other factors of producation to create goods and services.

• Any human-made resource that is used to create other goods and services.

• Any skill or knowledge gained by a worker through education and experice

What is an Opportunity Cost?

• The best choice that you give up when you make a choice.

• Study of the large economy as a whole or economic aggregates.

• A situation in which the free-market system fails to satisfy society's wants.