Chapter 1 Thinking the Economic Way

Which of the following explains economics as it should be?

___ is the means by which something is produced such as money, tools, equipment, machinery, and factories.

______  is value of next-best alternative a person gives up.

Which of the following involves using resources to produce the maximum amount of goods and services?

Into what four categories do economist divide factors of production?

Who wrote The Wealth of Nations?

Which is not considered a need?

Which of the following is not one of three basic economic question that society must answer due to scarcity?

Which of the following best describes wants?

Which of the following examines the costs and expected benefits of a choice?

What is another name for the production possibilities curve?

What does a point inside the curve of a PPC indicate?

What does the saying "There is no such thing as a free lunch" mean?

Which of the following would macroeconomics study?

Which is especially useful for showing changes over time?

A _____ is an alternative people give up when they make a choice

The __ states that as production swaps from 1 product to another, more resources are needed to increase production 2nd.

Which term means "making decisions based on what you believe is the best combination of costs and benefits?"

Which of the following buys goods for personal use?

Which of the following explains economics as it is, not as it should be?