1.1/1.2 - What is Economics?

What term is the condition that results from society not having resources to produce all the things people would like to have (wants/needs).

• Economics

• Scarcity

• Resources

• Factors of Production

What is the main difference between a want and a need?

• A want is something that is vital to life, while a need is something we would like to have.

• There is no difference between the two.

• A need to vital for life/a basic necessity and a want is something not necessary for survival.

Which of the following is NOT a question that is asked because of the concept of scarcity?

• WHAT to produce

• HOW to produce

• WHEN to produce

• FOR WHOM to produce

Match the following factors of production with the correct definition.

• Labor

• Tools, equipment, and factories used in production.

• Entrepreneur

• Individuals who start a new business or bring a product to market.

• Factors of Production

• "Gifts of nature"/natural resources.

• Land

• People and all their efforts/abilities.

• Capital

• Resources required to produce the things we would like to have.

What is the correct term for the following defintion: The most comprehensive measure of a country's total output and a key measure of a nation's economic health.

• Factors of Production

• Gross Domestic Product

• Resources

• Paradox of Value

Match the following examples with the correct factors of production.

• Entrepreneur

• Factory worker

• Capital

• Forests

• Land

• Steve Jobs

• Labor

• Bulldozer

Match the following terms with the correct definitions.

• Goods

• Work that is performed for someone.

• Durable Good

• An item that lasts longer than three years when regularly used (automobile).

• Service

• An item that is intended for final use by individuals.

• Consumer Good

• Useful, tangible objects

• Nondurable Good

• An item that does not last longer than three years when regularly used (clothing items).

Who came up with the concept that we know of as the "paradox of value"?

• Adam Smith

• George Washington

• Mr. Hoyt

• Alexander Hamilton

What is the correct term for the following defintion: Apparent contradiction between the high value of a nonessential item and the low value of an essential item.

• Circular Flow of Economic Activity

• Gross Domestic Product

• Paradox of Value

• Factors of Production

Match the following terms with the correct defintion.

• Wealth

• Location or other mechanism that allows buyers and sellers to exchange a specific product

• Utility

• Accumulation of products that are tangible, scarce, useful, and transferable.

• Factor Markets

• Capacity to be useful.

• Market

• The markets where the producers sell their goods and services.

• Product Markets

• The markets where the factors of production are bought and sold.