Economics: Study Guide Chapter 1-2

Which is not a Factor of Production?

Government programs that protect people who face unfavorable economic conditions

Which is not a benefit of capital? 

Selling a government owned business to individual investors

The extra benefit of adding one unit 

The arena of exchange in which households purchase goods and services from firms 

The use of fewer resources than an economy is capable of using

The act of giving up one benefit for another

A market-based economic system in which the government is involved to some extent

Level of economic prosperity

Thr process of bringing new methods, products, or ideas 

The income people recieve for supplying factors of production

Human-made objects used to create other goods and services 

a change in product requires more resources to produce the second product that the original 

Deciding whether to do or use an additional unit of resource

A country decides to produce more military goods than consumer goods 

ANd economic where there are three economic questions based on voultary exchange 

The arena of exchange in which firms purchase the factors of production

Which is an example of a need? 

Any arrangement that allows producers and consumers to exchange things. 

What is it called when there are limited goods and services to meet unlimited wants?

Consumers want more than producers are willing to make

The amount of money a business receives in excess of its expenses