Economics Chapter 1

A manufactured good that is used to produce other goods and services

The study of how people try to satisfy their needs through the use of scarce resources.

The PPC shows all the following EXCEPT

A graph showing the maximum combination of goods/services that can be produced from resources

The production possibilities curve

Tangible item that is economically useful or that satisfies an economic want.

The following are all examples of needs EXCEPT

Exchanging one thing for the use of another.

What is the fundamental problem of economics?

An economy on its production possibilities curve is operating

Entrepreneurs are considered the driving force in an economy because they

Which is the example of a service

Point D represents what on this production possibilities curve.

The study of the individual firm or business is considered

Which of these is NOT a factor of production

To move from point A to point B you would have to give up some

Because resources are limited, it forces individuals to make

People with all their efforts, abilities and skills to produce goods and services.

Point E represents this on the PPC

A lawn mower used by a person in the lawn care business is considered

If I am studying the unemployment issues of the United States, I am studying

Which of the following is the best example of a good

The basic requirements for survival are called

An economic model used to illustrate the concept of opportunity cost and trade offs is a

Which of the following is NOT a factor of production

The ability to produce more goods or services.

Land, labor, capital, and entrepreneurship are considered the

Something we would like to have but is not necessary for survival

Which of the following is a capital good

Simplified representations of real world problems are presented by economists on

Cost of next best alternative given up for the alternative chosen.

Condition of not having enough income,time, or other resources to satisfy unlimited wants.