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Economic Decisions
Basic Economics
Question | Answer |
---|---|
What are the 3 Economic questions that every system must ask? | What to produce? How to produce? For whom to produce? |
Name the 4 Factors of Production | Land/Natural Capital Human/Labor Entrepreneur |
What is the basic economic problem? | Scarcity |
Define scarcity | Satisfying unlimited wants with limited resources |
What is the difference between goods and services? | a commodity or service that can be utilized to satisfy human wants and that has exchange value. Service is intangible, is not stored and does not result in ownership/consumed at time of purchased |
What economic term refers to the total satisfaction received from consuming a good or service | Utility |
Economists use ? to measure if we have a healthy economy? | Indicators |
Gross Domestic Product determines if prices have changed from month-to-month? | False |
What are the benefits to globalization? | increase trade, prosperity, breaking down barriers to political agendas |
What are some of the disadvantages to globalization? | outsourcing one can affect the other (industries) |
Who's the Father of Economics? | Adam Smith. Wealth of Nation and talked about "the invisible hand" |
If a product has a low demand how does that affect pricing? | Lower |
Unemployment, natural disasters, and new technologies causing prices to increase. | True |
Capital in Economics is defined as | The man-made things used in production |
To what part of an industry does a worker's education contribute? | Human Capital |
Why do you think scarcity is an issue with the rich as well as the poor? | It is a human trait that few people, regardless of their economic status, are satisfied with what they have. |
What makes economics a social science? | Economics is a study of human behavior because it looks at the decisions people make and how they react to those decisions. |
Which economic question, do you think satisfy value & utility? what to produce? | what to produce? |
Which economic question, do you think satisfies questions of efficiency | how to produce? |
Which economic question, do you think satisfies questions of distribution & fairness? | For whom to produce? |