Unit 1: Economic Principles & Ways of Thinking

An individual or organization that creates goods and services.

Using the PPC, what does point D represent?

Scarcity is based on the fact that needs and wants are _____ but goods and services are ______.

Which of the following would enable this producer to potentially be able to produce at point E?

Price Gouging is

The total satisfaction received from consuming a good or service

Allocation by achievement or merit includes all of the following EXCEPT

A decision-making process that compares what will be gained and what will be sacrificed.

An example of an immeasurable trade-off

Using the PPC, if the producer wishes to move from point C to A, what is the trade-off?

Opportunity Cost is

The branch of economics concerned with large-scale factors, such as national productivity:

Using the PPC, what does point E represent?

Physical capital is defined as the _____ objects used to create goods and services.

Which of the following is an example of LAND as a factor of production?

When consumers want more of a good/service than producers are willing/able to provide.

Choosing to pay extra for guacamole at Qdoba because it is "only $2 " is an example of _______.

Factors of Production include all EXCEPT

An individual or organization that purchases goods and services.

Which principle is represented by the following: "People cannot have everything they want."

An incentive entices a person or organization to

Entrepreneurs do all of the following EXCEPT

The extra advantage gained by adding one unit is called __________.

The branch of economics concerned with small factor decisions by individuals or firms is _____.

Economics is the study of __________.

Economics studies the following domains EXCEPT

The subdiscipline of economics concerned with emotional, social, or moral reasons for decision-making.

Choices that result in the optimal level of benefit or utility

A cost that has already been incurred and which cannot be recovered to any significant degree

Economics is the study of how people satisfy their _______ and _______ by making _______ .

All are examples of physical capital EXCEPT

Every time we give up one benefit in order to gain another, greater benefit.

The Cobra Effect refers to a type of _________.

The benefits of capital include all of the following EXCEPT

"Guns or Butter" refers to the trade-off between _______ and _______.