Why do producers and consumers have to make choices about how they will use resources?

People have unlimited wants and needs but limited resources

a situation that exists because wants exceed resources

How is scarcity different than a shortage?

Scarcity is forever. Shortages are temporary.

Capital is defined as

everything used by people to produce goods and services.

all natural resources used to produce goods and services.

forces people to make choices., is a permanent situation., affects individuals, businesses, governments, and societies., is a condition caused when wants exceed resources

Entrepreneurship is defined as

the skill, ingenuity, and risk-taking to open a new business

all the human time, effort, and talent that go into products

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Duplicate of Understanding Scarcity

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I can explain how the basic problem of scarcity leads societies to ask three fundamental economic questions.

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Questions 29

Answers

1
Utility =
Satisfaction
Distribute
Additional
Bills
2
Why do producers and consumers have to make choices about how they will use resources?
It is easy to run out of basic needs
Resources are unlimited
Create governments to allocate resources
People have unlimited wants and needs but limited resources
3
Scarcity or Shortage?: Tickets to the 7 o'clock movie are sold out.
Scarcity
Shortage
4
Dirt is an example of what?
Labor
Capital
Entrepreneurship
Land
5
How is economic growth shown on a PPC?
Rightward shift.
Labeling a point outside the curve.
A movement up the curve.
Leftward shift.
6
Scarcity or Shortage?: The store is out of bananas so I buy grapes instead.
Shortage
Scarcity
7
What is scarcity?
a temporary shortage of a desired thing.
a condition in which few people desire a certain thing.
a situation that exists because wants exceed resources
when producers make too few of a good desired by consumers.
8
Which of the following is NOT one of the 4 main components in the Circular Flow?
Households
Government
Product Markets.
Factor (Resource) Markets
9
Allocate =
Satisfaction
Distribute
Efficiency
Additonal
10
How is scarcity different than a shortage?
Scarcity is forever. Shortages are temporary.
They're not different.
Scarcity isn't relevant in America.
Shortages are forever.
11
Capital is defined as
the raw materials needed to produce a product
the amount of money is costs to produce a product
the amount of effort it takes to manufacture a product
everything used by people to produce goods and services.
12
Land is defined as
the geographic location of natural resources
all private property used by manufacturers
all natural resources used to produce goods and services.
any real estate used to produce goods and services
13
Productive efficiency is...
What society needs and wants.
Producing goods in the least costly way.
Answer 2 and Answer 3.
Any point on the curve.
14
In which market do we buy things?
Scarce Market
Resource Market
Factor Market
Product Market
15
In Economics all alternatives are....
Trade Offs
Normative Statement
Opportunity Costs
Positive Statements
16
Taking the CNA class.
Labor
Land
Capital
Entrepreneurship
17
Marginal =
Analysis
Additional
Satisfaction
Distribute
18
In Economics the next best alternative is...
Explicit Cost.
Trade-Off
Opportunity Cost
Implicit Cost
19
Scarcity...
forces people to make choices.
is a permanent situation.
affects individuals, businesses, governments, and societies.
is a condition caused when wants exceed resources
20
What is implicit cost?
Forgone time and income.
Money we spend at stores
Opportunity Cost
Trade-Off
21
Entrepreneurship is defined as
all of the businesses in a free-market economy
the time, effort, and talent needed to make a product
the skill, ingenuity, and risk-taking to open a new business
the education required to open a new business
22
Flipping hamburgers at McDonald's.
Land
Entrepreneurship
Labor
Capital
23
What causes a PPC to shift?
Change in resource quantity/quality
Change in trade.
All answers.
Change in technology
24
Allocative efficiency is...
What society needs and wants.
Any point on the curve.
Any point inside the curve.
Any point outside the curve.
25
Deciding if you should stay at the mall longer or not is an example of...
Scarcity
Opportunity Cost
Marginal Analysis
Trade-Off
26
Labor is defined as
the education level of people in the work force
all the human time, effort, and talent that go into products
the machinery used in making products
how many people it takes to produce one unit of a product
27
Scarcity or Shortage?: There has been little rain so the city has restricted water use.
Shortage
Scarcity
28
Bill Gates is an example of what...
Labor
Land
Entrepreneurship
Capital
29
Land, Labor, Capital, and Entrepreneurship are known in economics as...
The Efficiency Model
Factors in a Market Economy
The Capitalist System
The Four Factors of Production

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