BJU Economics - Ch. 1 Quiz

What is economics?

The common-sense science of how and why people, businesses, and governments make the choices they do. It is a science.

How do scientists use their observations?

Scientist used them as a basis to predict future of cause-and-effect relationships.

What makes choices difficult?

Every choice has opportunity benefits and opportunity costs. Scarcity also prevents us from hearing everything we want.

What two factors might limit a person’s options when making a decision?

Time and money

What two things should govern a Christian’s mind when making choices?

Contentment and glorifying God via stewardship.

Something that is valuable because of its nature

Intrinsic value

An economic term for an imaginary unit a satisfaction

Util

An object’s usefulness to the buyer determines its worth

Subjective value

Any tangible thing that has a measurable lifespan

Good

Intangible items

Service