economics chapter 1 review

The only factors of production that are themselves the result of earlier production are _____ .

Capital goods

Distinguish between product markets and factor markets.

Factor markets are where productive resources are bought and sold but product markets are where individuals buy goods and services from producers

Land, capital, labor, and entrepreneurs are _____ .

Factors of production

_____ is the sum of the skills, abilities, health, and motivation of people.

Human capital

_____ arises because society does not have enough resources to produce all the things people would like to have.

Scarcity

Haircuts, repairs to home appliances, and enter- tainment are examples of _____ .

Services

Explain why services are excluded from the meas- ure of wealth.

Services are excluded because they are intangible

Explain why economic education is important.

it helps people become better decision makers

Economic products designed to satisfy people's wants and needs are called _____ .

Consumer goods

People who use goods and services to satisfy their wants and needs are called _____ .

Consumers

Explain why economics is considered a social science.

It's considered a social science because it deals with the behavior of people as they deal with an issue.

Describe incremental decision making

Making decisions with small steps so decision can be reburse

The _____ of going to a football game instead of working would include the money not earned at your job.

Opportunity cost

Describe the nature of an opportunity cost.

The nature of opportunity cost is whenever you make a choice to do something you miss out on the alternative you could have

Describe the relationship between goods, services, and consumers.

The relationship between goods, services, and consumers is goods and services are economic products that consumers pay for to satisfy their wants and needs

Explain why economists argue that productivity is important.

They say its important because we need good productivity with scarce resources so we dont run out of them

_____ is another name for the capacity of a prod- uct to be useful.

Utility

The _____ of a CD player can be expressed in dol- lars and cents.

Value

List the three basic economic questions that every society must face.

What to produce? How to Produce? For whom to produce?

Identify the cause of scarcity.

having only limited resources to meet seemingly unlimited wants