Economics Chapter 1 Economic Thinking

things such as food, clothing and shelter that are necessary for survival

• Needs

• Goods

• Services

• Wants

the situation that exists where there are not enough resources to meet human wants

• limitations

• scarcity

• rations

• coupons

the benefit or satisfaction we gain from the use of the good or service

• utility

• opportunity cost

• incentives

• TINSTAAFL

Scarcity affects whom? (best answer)

• Individuals

• Businesses

• Governments

• Everyone

physical objects that can be purchased

• Needs

• Goods

• Services

• Wants

people who buy goods and services for personal use

• consumers

• officials

• investors

• producers

work that one person performs for another for payment

• Needs

• Goods

• Services

• Wants

desires that can be satisfied by consuming a good or service

• Needs

• Goods

• Services

• Wants

people who make goods or provide services

• consumers

• officials

• investors

• producers

Which is NOT an economic question that needs to be answered?

• What will be produced?

• How will it be produced?

• Where will it be produced?

• For whom will it be produced?