Principles of Economics

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Scarcity is the basic economic condition that results from society not having enough resources to produce all the things people would like to have. A society's economic system determines:

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The way a society allocates its scarce resources to produce goods and services

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An opportunity cost is

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The next-best alternative you give up in order to do something else

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The study of how individuals, institutions, and society make optimal choices under the conditions of scarcity. The study of how people get what they want.

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Economics

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The BEST explanation of why there will always be scarcity is because

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While people's' wants are unlimited, resources are limited

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Bart has decided to buy some water balloons rather than get an extra milk at lunch. Choosing among economic alternatives is referred to as

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Trade - Off

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In economics, land refers to the natural resources needed for production, such as forests, minerals, and climate.

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True

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The basic economic condition that exists when unlimited wants exceed limited productive resources is called

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Scarcity

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Which would be most likely to be a “consumer good?” Lumber, Iron Ore, Chainsaw

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Chainsaw

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If Mr. Stevens decides to open his sporting goods store, what is the opportunity cost of this decision?

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The opportunity to rent it to another tenant.

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The study of economics is important because it enables us to

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Become better decision makers