Economics Chapter 1 Review

Economic products designed for final use by people are called

consumer goods

The _______ of a CD player can be expressed in dollars and cents

value

Haircuts and appliance repairs are examples of

services

Issue arises because society does not have enough resources to produce all the things
people would like to have.

scarcity

Going to a football game instead of working would include the money not earned at
your job.

opportunity cost

The sum of the skills, abilities, health, and motivation of people

human capital

Another name for the capacity of a product to be useful.

utility

The only factors of production that are themselves the result of earlier production.

capital goods

Land, capital, labor, and entrepreneurs are

factors of production

The study of how people use limited resources to satisfy unlimited wants

economics

Explain what is happening in each of the following PPC diagram.

the production possibility frontier shifted outward so the production of cars has expanded. This can se the result of increased labor force, or new technological improvements. Also, more resources for car production could have increased

Scarcity requires that people must

It requires that people must make decisions. They will have a high demand of a product to satisfy their wants.

The income earned by the people who sell the services of the factor of production _____ is called _______

labor; wages

A country's production possibilities will grow if it

increases its resources

Which of the following is NOT an example of land?

food

The term “opportunity cost” points out that

any decision regarding the use of a resource involves a costly choice.

The skills and knowledge gained by a worker through education and experience are

human capital

LaKenya's opportunity cost for attending college includes
I. other goods that could have been bought with the money spent for tuition
I. ordinary clothing LaKenya bought during the four years of college
Ill. income LaKenya could have earned from work at a full-time job

I and III only

What is the opportunity cost for moving from Point C to Point D?

Four consumer goods

Society's ability to produce more books and computers is limited by

available resources and technology

Which of the following resources would be considered a capital resource?

a baker’s oven