The Basics of Economics

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

What does point A under the curve represent.

one must make choices in using resources because of this.

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

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

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

This is the process used to create goods and services.

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

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

This the extra plus of adding the same unit.

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

The United States has this type of economy.

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

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

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

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

Steve Jobs was an example of this resource.

What are the uses of a production possibilities curve?

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

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

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

Which of these countries does not face scarcity.

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

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

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