econ 1-2

T OR F? economic choices to be made are the responsibility of all citizens in a free & democratic society

true

Tangible economic product that is useful, relatively scarce, transferable to others; used to satisfy wants and needs

good

Ability or capacity of a good or service to be useful and give satisfaction to someone

utility

Sum of people's skills, abilities, health, and motivation

human capital

Division of work into a number of separate tasks to be performed by different workers

division of labor

Good or service that is useful, relatively scarce, and transferable to others

economic product

Market where productive resources are bought and sold

factor markets

Productive resources that make up the 4 categories of: land, capital, labor, and entrepreneurship

factors of production

Meeting place or mechanism allowing buyers and sellers of an economic product to come together; may be local, national, regional, or global

market

people with all their efforts and abilities

labor

Degree to which resources are used efficiently; normally refers to labor, but can apply to all factors of production

productivity

Market where goods and services are offered for sale

product market

good intended for final use by consumers rather than businesses

consumer good

Economic activities in one part of the country or world affect what happens elsewhere

economic interdependence

money used to buy the tools and equipment used in production

financial capital

Tool, equipment, or other manufactured good used to produce other goods and services

capital good

fundamental economic problem facing all societies, that results from a combination of scarce resources and people's virtually unlimited wants

scarcity

Sustained period which a nation's total output of goods and services increases

economic growth

Apparent contradiction between the high value of nonessentials and low value of essentials

paradox of value

as a consumer, what role do you play in the circular flow of economic activity?

you provide labor for income, and then send your income to buy goods & services

what are some examples of capital goods?

robot welder in a factory, an oven in a bakery, a computer

T OR F? any good that lasts 3 years or more on a regular basis is a durable good

true

a good that lasts for less than 3 years

nondurable good

list examples of nondurable goods

food, paper, clothes

list examples of a service

haircuts, home repairs, concerts, teacher, doctor

T OR F? the difference between a good and a service is that a service is intangible (cant be touched)

true

T OR F? a good or service has to have utility for everyone

false

for something to have value, it must be ______________ and ______________

scarce, have utility

T OR F? services are not counted as wealth

true

Work that is performed for someone else

Service