socsci 9 Q1

What is the fundamental study of how people make choices due to limited resources?

Economics What Greek word does Economics come from and what was its original meaning?

"Oikonomia", meaning "household management" What is the simple formula for the existence of the need to choose in economics?

Unlimited Wants + Limited Resources = Scarcity Which level of economics studies individual people and household decisions?

Microeconomics Which level of economics studies the behavior of an overall national economy?

Macroeconomics What type of economic statement describes facts, reality, and what "is"?

Positive Economics Statement What type of economic statement expresses opinions or what "should" happen?

Normative Economics Statement Define scarcity based on the relationship between resources and needs.

Scarcity refers to limited resources that are insufficient to address unlimited human needs. What are things necessary for survival called?

Needs What is the term for wants that businesses or advertising convince people are necessary?

Created Needs What is the difference between Goods and Services in terms of tangibility?

Goods are physical objects you can touch, while services are intangible actions done for someone. Which type of good is provided by the government for everyone to benefit from?

Public Goods List the four Factors of Production.

Land, Labor, Capital, and Entrepreneurship In economics, what does Capital specifically refer to?

Man-made tools and equipment used to produce other goods What is the term for the ability to organize land, labor, and capital to earn a profit?

Entrepreneurship What concept is summarized by the phrase "There's No Such Thing as a Free Lunch"?

Everything has a cost, even if it is not apparent. What market problem occurs when the demand is greater than the available supply?

Shortage What is the term for buying large quantities of a commodity to benefit from future price increases?

Hoarding What is the difference between a Trade-off and Opportunity Cost?

Trade-off refers to all alternatives sacrificed, while Opportunity Cost is the single best alternative given up. Define Economic Efficiency.

A state where resources are allocated optimally so each person is served in the best possible way without waste. What does the Production Possibility Frontier (PPF) show?

The maximum possible combinations of two goods an economy can produce using all resources efficiently. On a PPF graph, what do points inside the curve represent?

Inefficiency or wasted resources On a PPF graph, what do points outside the curve represent?

Combinations that are impossible to obtain with current resources Why is the PPF typically curved rather than a straight line?

The Law of Diminishing Returns What is Allocative Efficiency?

Producing the specific combination of goods and services that society wants most. When does a country have a Comparative Advantage in a product?

When it can produce that good at a lower opportunity cost than another country. List the five levels of Maslow’s Hierarchy of Needs from lowest to highest.

Physiological, Safety, Social, Esteem, and Self-Actualization Which economic system makes decisions based on beliefs, culture, and customs?

Traditional Economic System In which economic system does the government decide what the society needs?

Command Economic System What is a Mixed Economic System?

A system that uses government involvement while also applying free market concepts. Which historical market system focused on accumulating wealth in the form of gold and silver?

Mercantilism What is Communism in terms of a command system?

A system where the state owns resources and each person is treated equally. What is Socialism in terms of command systems?

A combination of capitalism and communism where the government controls important industries. What is Fascism in terms of command systems?

A system where industries are controlled by the state under a dictator. Which consumer right refers to the entitlement to seek compensation for defective products?

Right to Redres