Section 1:
The Foundation of Economics
The Foundation of Economics
Something that we desire to have (but is not necessary for survival) is a __________.
want
In economics, this word means "additional" or "extra."
marginal
This word means able to be felt by touch. For example, a book, an umbrella, a computer, a car, a cell phone.
tangible
The quality of bringing dissatisfaction or unhappiness; doesn't work, useless
disutility
An explanation of how something works
theory
The condition in which our wants are greater than the resources available to satisfy them. This is the root cause of all economic problems.
scarcity
incentive
This word means not able to be felt by touch. For example, an economics lecture, happiness, hope, sadness, disappointment, friendship
intangible
All of the natural resources found in nature; acres of wheat fields, mineral deposits, water, trees, fish in a river or ocean
land
macroeconomics
This is the most highly valued opportunity or alternative given up when a choice is made.
opportunity cost
This is the branch of economics that deals with human behavior and choices as they relate to small units - individuals, small businesses, corporations, and single markets.
microeconomics
Anything that satisfies a person’s wants or brings satisfaction; tangible products (books, cars, computers, umbrellas)
goods
The physical and mental talents that people contribute to the production of goods and services; simply stated, it's the WORK that people do
labor
The study of small scale economics, such as personal finance
microeconomics
This is a situation in which having more of one thing necessarily means having less of something else.
trade off
This is the branch of economics that deals with human behavior and choices as they relate to the ENTIRE economy.
macroeconomics
Tasks that people pay others to perform such as filing your taxes, cutting your hair, getting a tattoo, going to the doctor, Dr. DF giving an economics lecture
services
Produced goods that can be used as resources for further production; such things as factories, machines, and equipment
capital
A statement that is based on opinion; qualitative in nature, but not quantitative; cannot be scientifically proved
bias/biased
This is a graphic representation of all possible combinations of two goods an economy can produce.
production possibilities frontier
This is a really easy question for $500. This is the social science that studies the choices of people trying to satisfy their wants in a world of scarcity.
Something that is useful; the quality of bringing satisfaction or happiness
utility
The special talent that some people have for searching out and taking advantage of new business opportunities and for developing new products and new ways of doing things
entrepreneurship
True or False: Scarcity will ALWAYS exist.
true