Economics - Unit 1 Economics Fundamentals
EXAM QUESTIONS (83 TERMS) WITH VERIFIED
DEFINITIONS UPDATED 2024
1). Economics
Ans: 1. the study of how individuals and nations make choices about ways to use
scarce resources to fulfill their needs and wants
2. Social science that deals with the study of the production, consumption, distribution of
goods and services and the transfer of wealth to obtain those goods and services.
2). Scarcity
Ans: a situation in which unlimited wants exceed the limited resources available to
fulfill those wants
3). Trade-offs
Ans: giving up one thing in favor of another
4). Opportunity costs
Ans: the highest-valued alternative that must be forgone when a choice is made
5). Rational decisions
Ans: choice in which you weigh the costs and benefits of each option
6). Marginal benefit
Ans: the additional satisfaction or benefit received when one more unit is produced
7). Marginal cost
Ans: the cost of producing one more unit of a good.
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, 8). Marginal benefit-marginal cost analysis
Ans: Rational decision making involves marginal benefits that equal or exceed the
marginal costs
9). Resources
Ans: anything that is used to produce goods or services
10). Allocation of resources
Ans: decision on how to divide scarce resources among different uses
11). Goods
Ans: tangible products that we use to satisfy our wants and needs
12). Services
Ans: actions or activities that one person performs for another
13). Factors of production
Ans: land, labor, capital, entrepreneurship
14). Capital goods
Ans: Buildings, machines, technology, and tools needed to produce goods and
services.
15). Human capital
Ans: the skills and knowledge gained by a worker through education and experience
16). Producers
Ans: individuals and organizations that determine what products and services will be
available for sale.
17). Consumers
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EXAM QUESTIONS (83 TERMS) WITH VERIFIED
DEFINITIONS UPDATED 2024
1). Economics
Ans: 1. the study of how individuals and nations make choices about ways to use
scarce resources to fulfill their needs and wants
2. Social science that deals with the study of the production, consumption, distribution of
goods and services and the transfer of wealth to obtain those goods and services.
2). Scarcity
Ans: a situation in which unlimited wants exceed the limited resources available to
fulfill those wants
3). Trade-offs
Ans: giving up one thing in favor of another
4). Opportunity costs
Ans: the highest-valued alternative that must be forgone when a choice is made
5). Rational decisions
Ans: choice in which you weigh the costs and benefits of each option
6). Marginal benefit
Ans: the additional satisfaction or benefit received when one more unit is produced
7). Marginal cost
Ans: the cost of producing one more unit of a good.
PaperStoc.com Page 1 of 12
, 8). Marginal benefit-marginal cost analysis
Ans: Rational decision making involves marginal benefits that equal or exceed the
marginal costs
9). Resources
Ans: anything that is used to produce goods or services
10). Allocation of resources
Ans: decision on how to divide scarce resources among different uses
11). Goods
Ans: tangible products that we use to satisfy our wants and needs
12). Services
Ans: actions or activities that one person performs for another
13). Factors of production
Ans: land, labor, capital, entrepreneurship
14). Capital goods
Ans: Buildings, machines, technology, and tools needed to produce goods and
services.
15). Human capital
Ans: the skills and knowledge gained by a worker through education and experience
16). Producers
Ans: individuals and organizations that determine what products and services will be
available for sale.
17). Consumers
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