Unit 1 Test: Introduction To Economics Real Exam Verified 100% 2024

Unit 1 Test: Introduction To Economics Real Exam Verified 100% 2024 Economics - correct answer-study of how people use their scarce resources to satisfy their needs and wants Scarcity - correct answer-limited amount; also implied to limited quantities of resources to meet unlimited wants Shortages - correct answer-term reductions in availability of an item land, labor, capital, and entrepreneurs - correct answer-list the factors of production land - correct answer-natural resources that are used to make goods and services labor - correct answer-efforts that people devote to a task for which they are paid capital - correct answer-any human-made resource that is used to create other goods and accounts physical capital - correct answer-buildings, tools, machinery human capital - correct answer-skills and knowledge coordinated by a worker factor payments - correct answer-income people receive for supplying the factors of production: land, labor, or capital. trade-off - correct answer-involves a sacrifice that must be made to get a certain product or experience. marginal analysis - correct answer-an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. opportunity cost - correct answer-the value of the next-highest-valued alternative use of that resource. guns vs butter - correct answer-the value of the next-highest-valued alternative use of that resource. household - correct answer-covers the economic analysis of all decisions made by households. firms - correct answer-is a business organization, such as a corporation, limited liability company or partnership, that sells goods or services to make a profit