Unit 2: Economics

Scarce but relatively useless goods may be worth more than useful abundant goods.

• paradox of value

• paradox of cost

• paradox of quality

• paradox of profit

_______ are things that are favorable to a decision maker.

• goods

• costs

• benefits

• profits

______ are things that are unfavorable to a decision maker.

• benefits

• costs

• profits

• services

Unintended consequences are _______ costs or benefits.

• known

• unforseen

• limited

• unlimited

Revenue generated from a business activity which exceeds the costs to create the goods or services.

• money

• expenses

• profit

• overhead

Tangible items that consumers want to purchase.

• trade off

• opportunity cost

• services

• goods

When labor is performed for profit.

• service

• product

• good

• resource

The individual(s) who pay for goods and services.

• sellers

• consumers

• producers

• inventors

Four factors of production

• resources, capital, labor, entrpreneur

• resources, capital, labor, producer

• land, capital, labor, producer

• land, capital, labor, entrepreneur

Land refers to

• production resources

• all resources

• capital resources

• natural resources