Economics Assessment 1 A-Day: Economic Foundations

Economists primarily try to understand how people satisfy what?

Their wants and needs

What is an economy, simply put?

Any system of consumption and production

The fundamental premise of wealth is that it is:

Produced

What are "goods" defined as in an economy?

Physical items produced in an economy

Which of the following is an example of a good?

Guns

What are "services" defined as in an economy?

The actions and/or activities that are done for others for a fee

How does HEB fit into the definition of a service provider?

They sell goods made by others, thus rendering them a service

Economics is described as what kind of science?

Social science

Economics is the study of the production, consumption, and distribution of what?

Society's scarce resources

Compared to other social sciences like history and philosophy, economics is considered:

Relatively young

Who founded economics in 1776?

Adam Smith

Economic growth is considered "a priori" a good thing because it leads to an increase in:

Disposable incomes

What else follows from economic growth, besides increased disposable incomes?

An increase in the total amount of goods and services available for consumption

Economic growth can happen in various specific sectors of the economy, or sometimes:

Across most sectors

Which of the following is NOT an example of a good?

Medical consultation

A primary benefit of economic growth is the increase in the quality of:

Goods and services

What are "needs" defined as in economics?

Necessary for our survival

What is the meaning of the word "Marginal" in economics?

The cause and effect of the addition or subtraction of one unit

What is Marginal Benefit (MB)?

The measure of how much additional benefit is adding in one additional unit

What is competition in an economic context?

The efforts of two or more entities to secure resources which are naturally limited