Chapters 5-8

In early history, trade was helped to develop by

• secure property rights

• coinage

• language

• all 3

An example of a zero-sum game is

• the relationship between a parent and child

• trade in a market between buyer and seller

• a sports competition between two teams

• a quiz in class

Secure property rights mean that individuals

• have the right to refuse trade

• are able to hide their belongings from others

• own more than they can use by themselves

• receive all of their income as gifts

Something is a resource if

• it is a form of land, labor, or capital

• it is a tangible object

• humans see it as potentially useful

• someone owns it

Resources are

• dynamic and constantly changing

• fixed and static

• always decreasing in number

Humans create resources by

• interacting with their environment

• combining or recombing other resources

• integrating tangible and intangible resources

• all answers are correct

Prices indicate

• Scarcity

• need

• profit

• nothing

We incur opportunity cost whenever we

• receive a bill for service

• make a choice

• receive help from others

• recognize that we have made an error

Scarcity persists because

• countries have failed to achieve continuous full employment

• economic wants exceed available productive resources

• individuals have frivolous desires

Institutions include

• norms, customs, and beliefs

• buildings, offices, and legal documents

• land, labor, capital