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?
