Making Decisions
physical objects that can be purchased, such as food, clothing, furniture
Goods
work that one person performs for another for payment, such as the work of sales clerks,teachers, doctors, nurses, lawyers, etc.
Services
things that are desired, but that are not necessary for survival
Wants
What does the "D" stand for in the "PACED" decision-making process?
Make a Decision
Choose 1 answer
An example of a need is:
A) Jewelry
B) Movie Tickets
C) Food
D) Video games
C) Food
person who makes goods or provides services
Producer
person who buys good or services for personal use
Consumer
things, such as food, clothing, shelter, etc., that are necessary for survival
Needs
What does the "P" stand for in the "PACED" decision-making process?
Define the Problem
Choose 1 answer
In order for money to be a medium of exchange, it has to be easy to move from place to place. This is the definition of
A) Portable
B) Durable
C) Capable
D) Movable
A) Portable
benefits offered to encourage people to act in certain ways
Incentives
benefit or satisfaction gained from the use of a good or service
Utility
machinery and tools
Capital
What does the "C" stand for in the "PACED" decision-making process?
State your Criteria
Choose 1 answer
A person who organizes, manages, and takes on the risks of a business
A) Producer
B) Entrepreneur
C) Consumer
D) Risk taker
B) Entrepreneur
to make decisions according to what you believe is the best combination of costs and benefits
Economize
the most highly valued opportunity given up when you make a choice
Opportunity Cost
What are the three functions of money?
Medium of exchange, Unit of account, Store of value
What does the "A" stand for in the "PACED" decision-making process?
List your Alternatives
Choose 1 answer
Money that has no intrinsic value; it works only because we all believe it does
A) Commodity Money
B) Fiat Money
C) Durable Money
D) Fiat Money
D) Fiat Money
the alternative that you give up when an economic choice is made
Trade-off
weighs the benefits of an action against its costs
Cost-Benefit Analysis
What are the four characteristics of Money?
Portable, durable, countable, & limited (scarce)
What does the "E" stand for in the "PACED" decision-making process?
Evaluate your alternatives
Choose 1 answer
Money has to be HARD to make (and hard to counterfeit). This is a definition of which characteristic?A) Scarce
B) Precious
C) Durable
D) Commodity
A) Scarce