The Basics of Economics

What are the uses of a production possibilities curve?

Incentives, self-interest, and competition direct economic activities in this type of economy.

This represents an economy using all its resources to produce maximum output.

This is the process used to create goods and services.

This graph illustrates the trade-offs a society faces because of scarcity of resources.

Economics is the study of how people seek to satisfy needs and wants by making

This is the knowledge and skills a worker gains through education and experience.

This refers to the use of fewer resources than the economy is capable of.

This refers to a person or group of people living in the same residence.

Steve Jobs was an example of this resource.

This is the decision making process of comparing what one will sacrifice to what one will gain.

The United States has this type of economy.

In car factory, a robot used to build a car is an example of this type of factor of production.

one must make choices in using resources because of this.

What is the act of giving up one benefit in order to gain another greater benefit.

At the end of the Iraq war, U.S. policy makers cut back on military spending to improve society

Which of these countries does not face scarcity.

What is a situation in which buyers and sellers come together to exchange products for money?

Economist use the terms guns and butter to represent trade-offs between these two options.

What is the highest valued alternative given up when making a choice?

What are the three key questions that every society must answer because of scarcity?

What does point A under the curve represent.

When a business person decides to increase or decrease spending they are

This is a situation in which people desire more than can be produced with available resources.

In this type of economic system customs and culture direct economic activities.

This the extra plus of adding the same unit.