A person who studies economics is called a(n) ___________?
Economist
100
What is a natural resource?
A natural item, such as farmland, that is used to produce goods and services
100
What is scarcity?
The combination of limited economic resources and unlimited wants that force people to make decisions about how to use resources effectively.
100
What is the value of the next best alternative given up to obtain a particular item?
Opportunity cost
100
In the process known as _______________, producers and consumers agree to provide one type of item for another.
Exchange
200
What is economics?
The study of the choices that people make to satisfy their needs and wants
200
What is a manufactured item, such as machinery, that is used to produce goods and services?
Capital Resource
200
What is productivity?
The level of output that results from a given level of input.
200
People use ______________ to analyze trade-offs and opportunity costs in producing specific combination of goods.
Production possibilities curve
200
Reliance among economic actors is known as ____________.
Interdependence.
300
What is the difference between a need and a want?
Need: anything necessary for survival (food, clothing, shelter)
Want: what people consume beyond what is necessary for survival
300
What are human resources?
Any human effort exerted during production.
300
Using minimum input to produce maximum output is called?
Efficiency
300
What is illustrated by a production possibilities curve?
All combinations of two goods that can be produced
300
What allows consumers to pay for an item over time?
Credit
400
What is a consumer? What is a producer?
Consumer: the people who decide to buy things
Producer: the people who make the things that satisfy consumers' wants and needs
400
What is the goal of entrepreneurship?
To develop a new mix of other other factors of production to create something of value.
400
How does specialization increase productivity?
Workers gain expertise in their assigned tasks - they work faster and produce a greater number of goods.
400
What does a point INSIDE the production possibilities curve represent?
Inefficient use of existing resources
400
What is money?
A standardized means of exchange.
500
What is the difference between macroeconomics and microeconomics?
Macroeconomics: the study of the behavior of entire economies
Microeconomics: the study of choices made by economic actors such as household, companies, and individual markets
500
When is a natural resource considered a factor of production?
Only when it is scarce and some payment is necessary for its use.
500
What is one way to improve efficiency?
Division of labor, shortcuts (less employees needed for the same production), mechanization (replace workers with machines).
500
What does a point OUTSIDE the production possibilities curve represent?
Impossibilities, given existing technology.
500
People who satisfy their own needs without outside assistance are said to be