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A good that lasts three years or more when used on a regular basis. It include tools such as robot welders and tractors, and consumer goods such as automobiles.
Durable Good
Alternative choices that are given up in favor of the choice we select
Trade-offs
a measure of the amount of goods and services produced with a given amount of resources in a specific period of time
Productivity
What is a simplified equation, graph, or figure that shows how something works?
Economic Model
Businesses and individuals interact economically through the _____________?
Market
Paradox of value refers to the:
A. high value of an essential item and the low value of a nonessential item
B. high value of a nonessential item and the low value of an essential item
C. contradiction of what consumers want and what they need
D. contradiction between gross domestic product and market value.
A. high value of an essential item and the low value of a nonessential item
B. high value of a nonessential item and the low value of an essential item
C. contradiction of what consumers want and what they need
D. contradiction between gross domestic product and market value.
The value of the next best alternative given up
Opportunity Cost
occurs when a nation’s total output of goods and services increases over time
Economic Growth
What takes place when factors of production perform only tasks they can do better or more efficiently than others?
An example of investment in human capital is
A. increase in the number of workers.
B. specialization among workers.
C. division of labor among workers.
D. education for workers.
D. education for workers.
the condition that results from society not having enough resources to produce all the things people would like to have
Scarcity
a diagram that represents various combinations of goods and services an economy can produce when all its resources are efficiently used
Production Possibilities Curve
where all of the factors of production are bought and sold
Factor Markets
What is a good intended for final use by individuals, such as shoes, a shirt, or an automobile?
Consumer Good
How do economic models help economists?
A. Models simplify and describe how a part of the economy works.
B. Models make simple economic explanations more complex.
C. Models make it easy to perform a cost-benefit analysis.
D. Models help increase the standard of living.
A. Models simplify and describe how a part of the economy works.
When making decisions in regards to our relatively scare resources, what are the three questions we need to answer?
What to produce
How to produce
For Whom to produce
How do opportunity costs affect consumers?
A. Consumers can produce only a certain number of goods.
B. Consumers can have everything they want.
C. Consumers have rights in the marketplace.
D. Consumers have to make choices based on finite resources.
D. Consumers have to make choices based on finite resources.
markets where producers sell their goods and services
Product Markets
What is a way of organizing work so that each worker or work group completes a separate part of the overall task?
Division of Labor
A nation’s wealth is determined by its
A. accumulation of all tangible and intangible resources
B. natural resources
C. accumulation of all tangible products
D. product possibilities frontier
C. accumulation of all tangible products
the monetary value of all final goods, services, and structures produced within a country’s borders in a 12-month period.
Gross Domestic Product
What are the four factors of production?
Land
Capital
Labor
Entrepreneurship
we rely on others, and others rely on us, to provide most of the goods and services we consume
Economic Interdependence
What is the difference between a need & a want?
Need: a basic requirement for survival (food, clothing, shelter)
Want: something we would like to have but is not necessary for survival
A country that fully and efficiently employs its resources
A. operates beyond the production possibilities curve.
B. operates on the production possibilities frontier.
C. has a high opportunity cost for production.
D. has a large amount of unused production resources.
B. operates on the production possibilities frontier.