NDSU Econ 201 Exam 1
Economics - Answer-The study of how a society uses goods and services in the face of economic scarcity
Absolute Scarcity - Answer-When a country runs out of usable resources
Economic Scarcity - Answer-The concept that people have infinate wants and desires
Commodities - Answer-Satisfies people's wants a desires (goods and services)
Goods - Answer-Physical Items (car, house)
Services - Answer-Intangible items (education, loans)
categories of Resources - Answer-1.) Labor
2.) Land
3.) Capital
4.) Entrepreneurship
Labor - Answer-All human effort that goes into production of goods and services
Land - Answer-All natural resources used for production
, Capital - Answer-The tools used in the production of goods
Entrepreneurship - Answer-An innovator or inventor who takes a risk financially
Earnings - Answer-A person's compensation for working
Types of Earnings - Answer-Land-Rent
Labor-Wages
Capital-Intrest
Entrepreneurship-Profits
Normal Profit - Answer-Needs to be earned in order for the business to stay in business
Excess Profit - Answer-Profits that exceed the business' basic needs
economic agents - Answer-1.) Households
2.) Firms (business')
3.) Government
Households - Answer-Supply's Labor to business' and government while purchasing goods and services
Firms (business) - Answer-Purchaces resources (labor, capital) and sells goods and services
Government - Answer-play's supporting role in process and collects taxes from firms and households
Economics - Answer-The study of how a society uses goods and services in the face of economic scarcity
Absolute Scarcity - Answer-When a country runs out of usable resources
Economic Scarcity - Answer-The concept that people have infinate wants and desires
Commodities - Answer-Satisfies people's wants a desires (goods and services)
Goods - Answer-Physical Items (car, house)
Services - Answer-Intangible items (education, loans)
categories of Resources - Answer-1.) Labor
2.) Land
3.) Capital
4.) Entrepreneurship
Labor - Answer-All human effort that goes into production of goods and services
Land - Answer-All natural resources used for production
, Capital - Answer-The tools used in the production of goods
Entrepreneurship - Answer-An innovator or inventor who takes a risk financially
Earnings - Answer-A person's compensation for working
Types of Earnings - Answer-Land-Rent
Labor-Wages
Capital-Intrest
Entrepreneurship-Profits
Normal Profit - Answer-Needs to be earned in order for the business to stay in business
Excess Profit - Answer-Profits that exceed the business' basic needs
economic agents - Answer-1.) Households
2.) Firms (business')
3.) Government
Households - Answer-Supply's Labor to business' and government while purchasing goods and services
Firms (business) - Answer-Purchaces resources (labor, capital) and sells goods and services
Government - Answer-play's supporting role in process and collects taxes from firms and households
