Term
| Economics is a social science because it deals with |
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Definition
| how people behave while trying to satisfy their needs and wants through use of relatively scarece resources |
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| The study of economics is important because |
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Definition
| it enables us to become better decision makers |
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| The basic problem in economics is ________ |
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Definition
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| The four factors of production are: |
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Definition
| land labor capital and entrepreneurs |
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| Land refers to the natural resources needed for production such as: |
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Definition
| forests, minerals and climate |
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Term
| What are the three ecoonomic questions? |
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Definition
| what, how, and for whom to produce |
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Term
| _____________ occurs when a nation's total output of goods and services increases over time |
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Definition
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| When manufactured goods are used to produce other goods and services, they are called: |
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| ___________ occurs when some necessities have little value, (water); while some non-necessities have a much higher value, (diamonds) |
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Definition
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| Economic products consists of both goods and services that are: |
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Definition
| useful, relatively scarce, and transferable to others |
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Term
| Both ______ and ________ are counted as part of a nation's wealth |
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Definition
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Term
| A nation's wealth refers to the accumulation of those products that are: |
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Definition
| tangible, scarce, useful, and transferable from one person to another |
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Term
| With regard to economic interdependence, the gain in profuctivity and income as a result of increased specialization almost always offsets the cost associated with the loss in: |
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Definition
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| _______ __ _______ is a characteristic of assembly line production |
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Definition
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| What increases efficiency because it allows workers to master a few tasks of ther jobs? |
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Definition
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Term
| An economy at its ___________ ___________ _________ is operating at full potential |
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Definition
| production possibilites frontier |
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Term
| What is the dollar value of all final goods and services and the most comprehensive measure of a country's total profuction output? |
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Definition
| Gross Domestic Product (GDP) |
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Term
| What is a popular model used to illustrate the concept of opportunity cost? |
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Definition
| production possibilities frontier |
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Term
| A production possibilities frontier shows what? |
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Definition
| the various possible combinations of output that can be profuced when all resources are fully employed |
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Term
| When economic growth takes place, the prouction possibilities frontier shifts outward, showing what? |
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Definition
| that more products are produced than before |
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Term
| The production possibilites frontier can not be reached as long as some resources remain ____ |
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Definition
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Term
| Time is a(n) ________ when a manufacturer assigns workers to one task rather than to another |
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Definition
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Term
| A nondurable good lasts for ______________ when used on a regular basis |
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Definition
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Term
| The circular flow of economic activity describes an economy that is free of what? |
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Definition
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Term
| To arrive at an economic decision, a __________ may be used to evaluate alternative choices of action |
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Definition
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Term
| TINSTAAFL - there is no such thing as a free lunch - describes what concept? |
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Definition
| that everything we do has a cost |
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