Economics Chapter 1

Which of the following is NOT something people need to survive?

Economic theory dealing with the economy and decision making by large units/governments.

__________ is the manufactured goods used to make other goods and services.

How do individuals satisfy their unlimited wants in a world of limited resources?

People do not have enough income, time, etc to satisfy their every want. This concept is called

_____ refers to the ability to start businesses, to introduce products and processes

What are some of the challenges that economists face when they apply models to real life?

__________ includes anyone who works to produce goods and services.

__________ refers to natural resources present without human intervention.

__________ any use of land, labor, and capital that produced goods/services more efficiently.

What is one assumption that is made about economic models?

Why do economists use the production possibilities curve?

The purpose of economics model is to show visual representation of

Why do economists test economic models?

Individuals are forced to make _____ every time they use resources in one way and not another.

What is the relationship between values and economics?

The value of the next best alternative that had to be given up to do a different action is

Economic theory that deals with behavior and decision making by individuals and firms.

Which of the following are choices that businesses have to make?

Economics is the study of families, businesses, and societies use limited resources to fulfill