(ECO) Ch.1 Vocabulary

What is the fundamental economic problem that arises due to limited resources and unlimited human wants?

• Production possibilities curve

• Capital good

• Scarcity

• economics

Which term refers to goods that are used for a long period and can withstand repeated use over time?

• Durable good

• Non durable good

• Consumer good

• Capital good

What are the resources used to produce goods and services called?

• Economic interdependence

• Capital good

• Entrepreneurs

• Factors of production

What is the measure of the total value of all goods and services produced by a country in a specific time period?

• Standard of living

• Gross domestic product

• Economic growth

• Human capital

Who are individuals who start new businesses, introduce new products, and improve management techniques called?

• Laborers

• Entrepreneurs

• Capitalists

• Consumers

In economics, what is the term for the next best alternative that must be given up when a choice is made?

• Opportunity cost

• Consumerism

• Economic model

• Cost-benefit analysis

What is the term for the situation where some necessities have little monetary value, while some non-necessities have a much higher value?

• Standard of living

• Economic scarcity

• Consumer good

• Paradox of value

1. 
   Which market is where the factors of production are bought and sold?

• Economic model

• Factor markets

• Product markets

• Economic interdependence

A market economy in which privately owned businesses have the freedom to operate for a profit with limited government intervention.

• Economic model

• Consumerism

• Economic growth

• Free enterprise economy

Which term describes the trade-off between two goods that can be produced using limited resources?

• Economic interdependence

• Standard of living

• Cost-benefit analysis

• Production possibilities curve