Principles of Agricultural Economics Quiz 1

What is a good?

A good is anything from which individuals receives satisfaction

What is a Utility?

A utility is the satisfaction one receives from a good

What is a Bad?

A bad is anything from which individuals receive dissatisfaction

What is a Disutility?

A disutility is the dissatisfaction one receives from a bad

What is a Resource?

A resource is anything used in the production of goods and services.

What are the 4 categories of resources?

The 4 categories of resources include land, labor, management, and capital.

List examples of Land and Capital?

Minerals, forest, water. Machinery, tools, factories, computers and buildings

All resources are scarce

True

Our wants are unlimited

True

What is Land?

Land is an all natural resource such as minerals, forests, water, and unimproved land

What is Labor?

Labor is the physical and mental talents people contribute to the production process

What is Capital?

Capital is produced goods that can be used as inputs for further production, such as, factories, machinery, tools, computers, and buildings.

What is Scarcity?

Scarcity is when nature and society have less to offer than people wish to have.

What is Economics?

economics is a social science that studies how producers, consumers, and societies choose among alternative uses of scarce resources in the process of producing, exchanging, and consuming goods and services, in order to achieve maximum satisfaction of society’s unlimited wants