Chapter 1 question

What is the distinction between a good and service?

A good is tangible product that can be used physically over and over again, service is in tangible not physically used as a support.

What do we call the machines that can be used to produce other good?

Capital goods

What is another name for a personal econonomics ?

Consumer economics

What is a cost/benefit analysis and what do we use it for?

Cost/benefit s model economist use to measure the cost of a decision based on benefits received from the decision.

What is entrepreneur?

It is a person who takes the risk of bringing other three factors together

Name the four factors of production?

Land or natural resources, capital goods, labor, enterpreneurship

Who answers the basic economic question in market economy?

Market

What is the distinction between mico and marco economics?

Micro is the individual part of economy marco is the national economy and its outputs.

What type of economy do Cuba, China, North Korea and Vietnam have?

Mixed leaning command

What do we call the cost of foregoing one product or choice for another?

Opportunity cost

What do we call the part of our economy that is owned or managed by the government?

Puremarket system

What is the most basic economic problem ever emonmy faces?

Scarcity a unlimited wants and limited resources

What are the limitations of making every decision by using cost/ benefit analysis?

The utility the usefulness or satisfactions that goods or services will give.

What do we mean when we say a product gives us utility?

We mean for example if you are a good student, your pencil gives you the utility to take notes.

What are the 3 question economic must answer?

What goods and serves will be produced? How will those goods and serves will be part of the world?