Unit 1 Lessons 1-2 Economic Vocabulary Review

What is the study of how people choose to use their limited resources to satisfy their unlimited wants called?

• Economics

• Biology

• Geography

• Sociology

Which term describes a system used to manage limited resources for the production, distribution, and consumption of goods and services?

• Economy

• Incentive

• Resource

• Scarcity

Which branch of economics uses objective analysis to find out how the world works and aims to describe how things are?

• Positive Economics

• Normative Economics

• Cost-Benefit Analysis

• Tradeoff

What is the branch of economics that applies value judgments to data in order to recommend actions or policies?

• Normative Economics

• Positive Economics

• Scarcity

• Economy

What term describes the condition that results because people have limited resources but unlimited wants?

• Scarcity

• Resource

• Tradeoff

• Incentive

What is the exchange of one benefit or advantage for another that is thought to be better called?

• Tradeoff

• Resource

• Economy

• Incentive

What is a way to compare the costs of an action with the benefits of that action, and if benefits exceed costs, the action is worth taking?

• Cost-Benefit Analysis

• Normative Economics

• Scarcity

• Positive Economics

What is any factor that encourages or motivates a person to do something, such as prices, taxes, and laws?

• Incentive

• Resource

• Tradeoff

• Economy

What is anything used to produce an economic good or service called?

• Resource

• Scarcity

• Economics

• Cost-Benefit Analysis

What is an economic enigma?

• A puzzle or riddle that may be explained through economic analysis.

• A type of economic policy.

• A financial statement.

• A method of production.