The Basics of Economics

one must make choices in using resources because of this.

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

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

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

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

This the extra plus of adding the same unit.

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

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

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

The United States has this type of economy.

Steve Jobs was an example of this resource.

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

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

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

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

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

This is the process used to create goods and services.

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

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

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

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

What are the uses of a production possibilities curve?

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

What does point A under the curve represent.

Which of these countries does not face scarcity.

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