Basic Economic Terms: Economics, FoP, Scarcity, Macro/Micro

Economics is the study of how to use (1) _________ that have (2) ______________.

• (1) scarce resources
  (2) alternative uses

• (1) unlimited resources
  (2) alternative uses

• (1) scarce resources
  (2) single uses

• (1) unlimited resources
  (2) single uses

The central problem that economics deals with is

• scarcity

• alternatives

• resources

• production

Our wants are_________________

• Limited

• Unlimited

• short

• None of these

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

Factors of production is about...

• inputs

• outputs

WHAT ARE THE 4 FACTORS OF PRODUCTION?

• Land, Capital, Need & Want

• Land, Labor, Capital, Entrepreneurs

• Water, Air, Food & Shelter

• Land, Capital, Good & Service

Land includes...

• The "gifts of nature" or natural resources not created by human effort.

• the tools, equipment, and factories used in production of goods and services

• people with all their efforts and abilities

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

Labor refers to...

• people with all their efforts and abilities

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

• the tools, equipment, and factories used in production of goods and services.

• The "gifts of nature" or natural resources not created by human effort.

Entrepreneurs are...

• people with all their efforts and abilities

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

• The "gifts of nature" or natural resources not created by human effort.

• the tools, equipment, and factories used in production of goods and services

Cows, chickens, and pigs are an example of ...

• Land
• Labor
• Entrepreneur
• Capital