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WorksheetsEcon: Chapter 1 Review
Total questions: 23
Worksheet time: 5mins
People have
limited wants and needs
unlimited wants and needs
Resources can include, but are not limited to
money
time
labor
water
Resources are
limited
unlimited
Because resources are limited, we have a condition called
utility
paradox of value
scarcity
wealth
Because of scarcity, we're forced to carefully make
change
options
choices
doughnuts
The difference between needs and wants can be summed up in one word:
survival
morals
Goods are products that are
tangible
durable
intangible
non-durable
Services are products that are
tangible
durable
intangible
non-durable
A durable product is one that is consumed
over 3 years
less than 3 years
A tangible product is one that you
can touch
can't touch
These are examples of services
rock concert
hotel room
bottled water
diamonds
There are examples of goods
a flight to another country
a house
a haircut
shoes
TINSTAAFL means
There is no such thing as a free lunch
coupons are truly free
There is always a cost
The three basic questions all societies face are
What to produce?
How to produce it?
Where or when to produce it?
For whom to produce?
All societies have to answer these questions because of
goods
services
scarcity
wealth
Economics is
the social science of satisfying unlimited wants/needs through the use of scarce resources
the mathematical science of money
What are the four factors of production?
land
labor
capital
entrepreneurs
free enterprise
Painters get pigments for their paint from
land
labor
capital
entrepreneurs
Painters get their tools from
land
labor
capital
entrepreneurs
The hours painters spend working is
land
labor
capital
entrepreneurs
Painters look for buyers and places to sell their work because they are
land
labor
capital
entrepreneurs
Opportunity cost is
the option you did not choose
the money you spent on the option you chose
Opportunity cost could be
money
time
a subjective value
all of these
