Economics with Financial Literacy Chapter 1

Your teacher earns $200,000 each year. This is most likely related to:

Goods that last for at least 3 years when used regularly

Goods intended for final use by consumers other than businesses

When a nation's total output of goods and services increases over time

Assignment of tasks to the workers, factories or regions that can perform them most EFFICIENTLY

Amount of output in a specific amount of time with a given amount of resources is called:

Market in which goods and services are bought and sold

Risk-takers who start new businesses or bring new products to market

The strategy that compares the benefits of an action to the expected cost

Ideally a car is an example of a:

Both goods and services are counted as wealth.

The PEOPLE with all their abilities and efforts

The most comprehensive measure of a nation's wealth is provided by its:

Reliance on others to produce goods and services we need

Entrepreneurship is defined as: people's skills, abilities, health, knowledge, and motivation

Process or means by which something can be accomplished

Results from society not having enough resources to produce all the things people need and want

The economy is made of up of two groups:

Tools, equipment, machinery, and factories used to produce goods and services

The value of the next best alternative that was not taken

Who is the "Father of Economics"?

Necessary costs that usually occur monthly or annually

Way of organizing so each worker completes a separate part of the overall task

The sum of people's skills, abilities, health, and motivation

A meeting place or mechanism through which buyers and sellers come together

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

Which of the following helps determine something value?

The source of all household spending

Alternative Choices

A diagram representing all possible combinations of economic output

Separation of tasks to be performed by different workers is division of labor.

Quality of life based on ownership of necessities and luxuries that make life easier

All societies are faced with 3 basic economic questions about the use of resources. They are: