ECONOMICS Chapter 1: The Economic Way of Thinking (Key Terms)

What is the fundamental problem in Economics?

• scarcity

• production

• underutilization

• statistics

Scarcity arises because human ​ (a)   are limitless, while resources are ​ (b)   .

• wants
• limited
• abundant
• emotions

Scarcity affects what a consumer buys and what a producer makes.

• True

• False

Scarcity affects how the four ​ (a)   are put to use.

• factors of production
• economic models
• incentives
• trade-offs

Since people cannot have everything they want, they have to make ​ (a)   , which involves a ​ (b)   (something you have to give up to get what you want).

• choices
• trade-off
• producer
• consumer

When making an economic decision, you have to consider the ____ (the value of the thing you are giving up).

• production possibilities curve

• opportunity cost

• incentive

• underutilization

A "consumer" is a simplified representation of reality that can be used to clarify concepts.

• True

• False

The study of the economic behavior of individual persons, families, and businesses is known as​ (a)   .

• microeconomics
• macroeconomics
• production possibilities curves
• Ubernomics

The study of the economy as a whole is known as what?

• macroeconomics

• microeconomics

• underutilization

• scarcity

The four factors of production are---

• land, labor, capital, entrepreneurship

• land, laws, customs, electricity

• land, expenses, profit, entrepreneurship

• limited, liability, corporation, enterprise