Economics: Unit 1

What is a good?

A good is a useful, tangible thing.

What person published The Wealth of Nations? What year?

Adam Smith published The Wealth of Nations in 1776.

What can automation (machinery) often do to costs?

Automation can often decrease costs.

What should economic explanation be based on?

Economic explanation should be based on careful research.

What can economics help predict?

Economics can help predict what may happen in the future.

Why is Economics considered a social science?

Economics is considered a social science because it used scientific methods to build theories that help explain the behaviour of the economy.

GDP stands for gross domestic point.

GDP measures overall domestic production for a year.

What do the initials GDP stand for?

GDP stands for gross domestic production.

In the United States, what largely determines what to produce?

In the United States, the government largely determines what to produce.

Can a society produce everything its people want?

No, a society cannot produce everything it's people want.

Is anything in life actually "free"? Why or why not?

Nothing in life is actually free because someone is paying for it.

Why does your book say causes economics to be a "dynamic science"?

Scarce resources cause economics to be a dynamic science.

What is a service?

Service is work that is performed for someone.

What country does your book say has "highly automated factories"?

South Korea has highly automated factories.

What does TINSTAAFL mean?

TINSTAAFL means "There is no such thing as a free lunch".

In North Korea, who determines what is produced?

The North Korean government decides what is produced.

What is the benefit to lower production costs?

The benefit to lower production costs is lower prices.

What is the book definition of economics?

The book's definition of economics is when the government provides things like building roads, in which people cannot do by themselves. They also provide assistance to those in need of basic necessities.

What is the book definition of scarcity?

The book's definition of scarcity is when a wealthy country like the United States has people that lack food, clothing, and adequate housing.

What is the difference between a good and service?

The difference between a good and a service is that services cannot be physically touched however goods can be physically touched.

Explain the difference between a want and a need.

The difference between a want and a need is that a want is something that a person desires but can live without, it's unnecessary. A need is something that a person cannot live without, it's necessary.

What is the first question societies must answer?

The first question societies must answer is what and how much should be produced.

What are the four categories of goods?

The four categories of goods are durable goods that last three years or more, nondurable goods that last fewer than three years, consumer goods that are intended for final use by the consumer, and capital goods which are used by businesses to produce others.

What are the four key elements of economic study?

The four key elements of economic study are description, analysis, explanation, and prediction.

What is the fundamental economic problem all societies face?

The fundamental economic problem all societies face is conflict.

What is the second question societies must answer?

The second question societies must answer is how should goods and services be produced.

What does the study of economics help us become?

The study of economics helps us become more informed citizens and decision makers.

What does the term value refer to?

The term value refers to the benefit from goods or services.

What is the third question societies must answer?

The third question societies must answer is for whom should products be produced.

What is utility? Can it be measured?

Utility is the total satisfaction received from goods or services.

Who does your book say is responsible for making "good economic decisions"?

We are responsible for making good economic decisions.

Why do we have to make careful choices about the way we use resources?

We have to make careful choices about the way we use resources because the country's resources are limited and there is not enough of everything people want.

When analyzing sources, what should we always take into account?

When analyzing sources we should always take into account the bias of the source.