ECON Pre-Final; Selected Topics

Why do all societies have to make decisions about how resources will be used?

• People are greedy

• There are not enough resources for those who want them

• Resources are too expensive for most people

• Because there is a huge gap between the rich and poor

Scarcity is defined as a limited supply of resources and...

• limited wants for those resources

• unlimited resources

• limited resources

• unlimited wants for available resources

What are all societies forced to do because of scarcity?

• Make production decisions

• Conserve resources

• Limit resource use

• Charge large amount of money for available resources

These are resources in their natural state such as oil, natural gas, coal, trees.

• land/natural

• labor/human

• capital

• entrepreneurship

These resources such as money, tools, and equipment needed for production of products or services.

• land/natural

• labor/human

• capital

• entrepreneurship

These resources are employees of the business.

• land/natural

• labor/human

• capital

• entrepreneurship

This is the individual who takes the risk with time and money of owning and operating the business.

• land/natural

• land/human

• capital

• entrepreneurship

Economic utility is the amount of _________________ a consumer receives from the consumption of a particular product or service.

• value

• profit or commission

• interest or dividends

• wealth or prosperity

The quantity of a product consumers are willing and able to buy at a given price.

• Supply

• Competition

• Demand

• Scarcity

The quantity of a product that producers are willing and able to produce at a given price:

• Supply

• Competition

• Demand

• Scarcity