Introduction To Economics Notes Questions And Answers 2024

Introduction To Economics Notes Questions And Answers 2024 what is economics? - correct answer-the study of how individuals and societies make decisions about ways to use scarce resources to fulfill their wants and needs Macroeconomics - correct answer-the big picture; economic growth of our nation, employment, etc.; the choices made by large groups (nations) Microeconomics - correct answer-how individuals make economic decisions Scarcity - correct answer-people have unlimited wants and needs but limited resources resources - correct answer-used to make other goods; can be materials or people (people can make items) because all resources, goods, and services are limited, we must make ........ - correct answer-Choices Why do we make choices? - correct answer-we make choices about how we spend or money, time, and energy so we can fulfill or NEEDS and WANTS Needs - correct answer-"stuff" we must have (need) to survive; generally: food, shelter, and clothing Wants - correct answer-"stuff" we would like to have (fancy clothing, fast food, jewelry, big phones/TV's) - Also known as LUXURIES 5 Economic Questions - correct answer-1. What to produce 2. how much to produce 3. how to produce it 4. 5. opportunity cost - correct answer-the value of the next best choice; a special kind of trade-off What is production - correct answer-how much stuff an individual, business, country, even the world makes land - correct answer-water, natural gas, oil, trees are what factor of production labor - correct answer-manpower