Economics Unit 1 Study Guide

Front

Economics is the study of how people

Back

Choose from limited resources to meet their needs

Front

Physical objects such as clothes or shoes are defined as

Back

goods

Front

Something such as air, food, or shelter that is necessary for survival is a

Back

need

Front

All goods and services we produce are

Back

scarce

Front

The resources used to make all goods and services are called

Back

factors of production

Front

Which of the following is not a factor of production? a woman who makes a quilt, the cotton cloth and thread used to make the quilt, the children whom the woman supports with her labor, the wood frame on which the quilt is sewn

Back

the children whom the woman supports with her labor

Front

Any human-made resource that is used to create other goods and services is

Back

capital

Front

Which of the following is not an example of capital? Options: the paint used by a house painter, the computer used by an accountant, the trees used to make paper, the factory where a good is produced

Back

the trees used to make paper

Front

Natural resources that are used to make goods and services are considered

Back

land

Front

A student buys a soda from the vending machine with a choice of soda or water. What is the opportunity cost?

Back

water