Chapter 1 Quiz

the amount of output that results from a given level of inputs

productivity

The work people do

Labor

After creating an economic model, economists see if it's appropriate by

Testing the model

A car used by a messenger service is a type of

capital

Economics is primarily concerned with which of the following?

use of resources

A company's office buildings are an example of

Capital

Buildings, tools, and machinery are what factor of production.

Capital

A production possibilities curve helps to determine

The maximum combinations of goods and services produced

Basic problem of economics

scarcity

Situation in which people do not have enough resources to satisfy every desire

scarcity

Activities done for a fee

services

any use of land, labor, and capital that produces goods and services more efficiently

technology

Which are the basic needs of people according to economics

Food, shelter, clothing

Economics build economic models

Help analyze economic behavior

Trees, cows, and sun are what factor of production

Land

Factors or production include which of the following?

Land, labor, capital, entreperneurship

The branch of economic theory dealing with the economy as a whole

Macroeconomic

The branch of the government looking at the small units of individual

Microeconomics

The value of the next best alternative that has to be given up for the action that is chosen

Opportunity cost

Entrepreneurship refers to the ability to

Start new business

Manufactured goods needed to produce other goods and services are called

capital goods

a theory that helps explain and predict economic behavior in the real world

economic model