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ECONOMICS

Explore the basics of economic resources, systems, and decision-making in this insightful review. Learn about entrepreneurship, capital, land, labor, scarcity, production possibilities, and more. Understand the key concepts that shape economic analysis and decision-making processes.

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ECONOMICS

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  1. ECONOMICS Ch’s 1-2 Test REVIEW

  2. Entrepreneurship, Capital, Land, and Labor.

  3. The Four Economic Resources or Factors of Production.

  4. What is the combination of limited economic resources and unlimited wants called?

  5. Scarcity

  6. This illustrates all the possible combinations of two goods or services that can be produced within a stated period of time.

  7. Production Possibilities Curve

  8. A person who risks failure in return for the possibility of financial gain (profit).

  9. Entrepreneur

  10. What are the three basic economic systems?

  11. Traditional, Command, & Market

  12. Economic system in which individuals own the factors of production and answer the three basic questions.

  13. A market economy

  14. What is capital?

  15. The buildings, structures, machinery, and tools used in the production process (“things that make other things”).

  16. What is the payment for capital? Interest

  17. What is land?

  18. “Gifts of nature” (natural resources)

  19. What is the payment for land? Rent

  20. Economic analysis that describes the way the economy actuallyworks. Positive Economics

  21. What is labor?

  22. People and their skills

  23. What is the payment for labor? Hourly wages and salaries

  24. What is a product's satisfaction or usefulness to a person?

  25. Utility

  26. Branch of economics that studies how people make decisions and how those decisions interact. Microeconomics

  27. When you consume more and more of a product, you get less and less satisfaction. What is this called? Diminishing Marginal Utility

  28. The economic system in which the basic economic questions are answered by government planners.

  29. Command Economy

  30. Technical means for the production of goods and services. Technology

  31. Scarcity exists because ………

  32. Human wants are unlimited and the resources needed to satisfy those wants are limited.

  33. What are the Three Basic Economic Questions?

  34. What to produce?How to produce?For whom to produce?

  35. Which question is most important and why?

  36. For whom, because you must have a market for your product.

  37. If society wants to produce more of a particular good, it must sacrifice larger and larger amounts of other goods to do so. This is why the PPC is “bowed out.” What law governs this situation?

  38. The Law of Increasing Opportunity Costs

  39. What is the reason for the Law of Increasing Opportunity Costs?

  40. Factor Suitability

  41. What is factor suitability?

  42. When resources are moved from the production of one product to the production of another product, they become less and less suited to producing the other product.

  43. The real cost of an item, what you must give up to get it. Opportunity cost

  44. A person who risks failure in return for the possibility of financial gain (profit).

  45. Entrepreneur

  46. What you give up to get something else or your next best alternative choice.

  47. Trade Off

  48. What is TINSTAAFL?

  49. “There is no such thing as a free lunch.” All production involves the use of scarce resources and thus the sacrifice of alternative goods.

  50. What are the four ways to “push out the PPC” to the right or “grow” the economy?

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