Economics - Unit 1 Economics Fundamentals
Final EXAM 100+ QUESTIONS & ANSWERS /
ADVANCED PHARMACOLOGY FOR CARE OF
FAMILY|AGRADE
scarcity - ANSWER//a situation in which unlimited wants exceed the limited resources
available to fulfill those wants
trade-offs - ANSWER//giving up one thing in favor of another
opportunity costs - ANSWER//the highest-valued alternative that must be forgone when
a choice is made
rational decisions - ANSWER//choice in which you weigh the costs and benefits of each
option
marginal benefit - ANSWER//the additional satisfaction or benefit received when one
more unit is produced
marginal cost - ANSWER//the cost of producing one more unit of a good.
marginal benefit-marginal cost analysis - ANSWER//Rational decision making involves
marginal benefits that equal or exceed the marginal costs
resources - ANSWER//anything that is used to produce goods or services
allocation of resources - ANSWER//decision on how to divide scarce resources among
different uses
goods - ANSWER//tangible products that we use to satisfy our wants and needs
services - ANSWER//actions or activities that one person performs for another
factors of production - ANSWER//land, labor, capital, entrepreneurship
capital goods - ANSWER//Buildings, machines, technology, and tools needed to
produce goods and services.
, human capital - ANSWER//the skills and knowledge gained by a worker through
education and experience
producers - ANSWER//individuals and organizations that determine what products and
services will be available for sale.
consumers - ANSWER//people who buy goods and services
entrepreneur - ANSWER//(n.) a person who starts up and takes on the risk of a
business
barter - ANSWER//To exchange goods or services without the use of money
production possibilities curve - ANSWER//A graphical representation that shows the
possible combinations of two products that an economy can produce, given that its
productive resources are fully employed and efficiently used.
division of labor - ANSWER//the process of dividing work into specialized jobs that are
performed by separate individuals
assembly line - ANSWER//Production method that breaks down a complex job into a
series of smaller tasks
imports - ANSWER//goods and services purchased from other countries
exports - ANSWER//Goods and services sold to other countries.
voluntary exchange - ANSWER//the act of buyers and sellers freely and willingly
engaging in non-fraudulent market transactions. Both parties should benefit from the
exchange.
non-fraudulent exchange - ANSWER//without fraud/without deceiving; honest, voluntary
exchange
economic systems - ANSWER//The ways in which a society answers the three basic
economic questions to organize production, distribution, and consumption of goods and
services to solve the economic problem of scarcity
3 basic economic questions - ANSWER//Every economic system must answer the three
basic economic questions: What to produce; How to produce it? For whom to produce?
command economy - ANSWER//a system in which the central government makes all
economic decisions
Final EXAM 100+ QUESTIONS & ANSWERS /
ADVANCED PHARMACOLOGY FOR CARE OF
FAMILY|AGRADE
scarcity - ANSWER//a situation in which unlimited wants exceed the limited resources
available to fulfill those wants
trade-offs - ANSWER//giving up one thing in favor of another
opportunity costs - ANSWER//the highest-valued alternative that must be forgone when
a choice is made
rational decisions - ANSWER//choice in which you weigh the costs and benefits of each
option
marginal benefit - ANSWER//the additional satisfaction or benefit received when one
more unit is produced
marginal cost - ANSWER//the cost of producing one more unit of a good.
marginal benefit-marginal cost analysis - ANSWER//Rational decision making involves
marginal benefits that equal or exceed the marginal costs
resources - ANSWER//anything that is used to produce goods or services
allocation of resources - ANSWER//decision on how to divide scarce resources among
different uses
goods - ANSWER//tangible products that we use to satisfy our wants and needs
services - ANSWER//actions or activities that one person performs for another
factors of production - ANSWER//land, labor, capital, entrepreneurship
capital goods - ANSWER//Buildings, machines, technology, and tools needed to
produce goods and services.
, human capital - ANSWER//the skills and knowledge gained by a worker through
education and experience
producers - ANSWER//individuals and organizations that determine what products and
services will be available for sale.
consumers - ANSWER//people who buy goods and services
entrepreneur - ANSWER//(n.) a person who starts up and takes on the risk of a
business
barter - ANSWER//To exchange goods or services without the use of money
production possibilities curve - ANSWER//A graphical representation that shows the
possible combinations of two products that an economy can produce, given that its
productive resources are fully employed and efficiently used.
division of labor - ANSWER//the process of dividing work into specialized jobs that are
performed by separate individuals
assembly line - ANSWER//Production method that breaks down a complex job into a
series of smaller tasks
imports - ANSWER//goods and services purchased from other countries
exports - ANSWER//Goods and services sold to other countries.
voluntary exchange - ANSWER//the act of buyers and sellers freely and willingly
engaging in non-fraudulent market transactions. Both parties should benefit from the
exchange.
non-fraudulent exchange - ANSWER//without fraud/without deceiving; honest, voluntary
exchange
economic systems - ANSWER//The ways in which a society answers the three basic
economic questions to organize production, distribution, and consumption of goods and
services to solve the economic problem of scarcity
3 basic economic questions - ANSWER//Every economic system must answer the three
basic economic questions: What to produce; How to produce it? For whom to produce?
command economy - ANSWER//a system in which the central government makes all
economic decisions
