Economic Basics
What are the THREE things that are considered needs?
Food, water and shelter
Entrepreneurs must be willing to take:
Risks
The benefits and costs of a choice is shown by a:
Decision making grid
A microeconomist would study:
a rise in prices for a particular product
What is a person who makes goods or provides a service called?
Producer
Deciding to go to a baseball game instead of studying for a test is an example of a:
Trade off
The satisfaction received from using one more unit of a good or service is called:
Marginal benefit
Macroeconomists would study:
a general rise or fall in prices overall
Scarcity
The FOUR factors of production are:
Land, labor, capital and entrepreneurship
Opportunity costs would be increased by:
Switching from producing one product to another
The explanation of how the economy is, not how it should be
Positive economics
Who decides what goods to produce in the United States?
Producers and consumers
What is the definition of economizing:
Making decisions based on what you believe is the best combination of costs and benefits
Production possibilities curves (OR FRONTIER) can help utilize a companys:
efficiency
Normative economists describe the economy:
as it SHOULD be, not as it is
How would you describe a want?
Unlimited and ever changing (always changing)
How would you describe the saying "There is no such thing as a free lunch?"
Everything costs something
Harvesting less corn than the land is capable of producing is an example of:
underutilization
A line graph showing rising and falling profits over years have a:
varied slope