Economics: Unit 1 Section 1

What are the three basic economic questions?

1. What to produce? 2. How to produce? 3. For whom to produce?

Which one of your choices is NOT a resource type? Select one: A. Capital B. Labor C. Services D. Land

C. Services

What are the four factors of production?

land, labor, capital, entrepreneurship

What is the relationship between a person's unlimited wants and limited resources called?

Scarcity

What is an opportunity cost?

The value of the next-best alternative given up when a choice is made

If needs are the minimal requirements of things such as food and water, what are "wants"?

Things that are desired but are not essential to life

Why does a person make trade-offs?

Trade-offs are made to overcome scarcity.

There are two types of capital: physical capital and WHAT other type?

Human capital

______________________ studies a nation's economy as a whole, including unemployment, inflation and government spending and growth.

Macroeconomics

What are the two criteria that you need to meet in order to have scarcity?

Desirability and Limited Amounts

What is the definition of "economics"?

Economics is the study of people and choices we make under conditions of scarcity.

The study of microeconomics helps predict GDP and determine the unemployment rate. True or False?

False