SSEF 1 Vocabulary and Review

Match the following

• Economics

•   All the things we give up when we make a decision.

• Scarcity

• Those things necessary for survival.

• Trade-offs

• The study of how individuals, businesses and governments satisfy their needs and wants.

• Needs

• Those things we don’t have to have to survive but would like to have. 

• Wants

• Basic problem that Economics addresses and is the condition where unlimited needs and wants exceeds the limited resources.

Match the following

• Opportunity Cost

• The most desirable thing we give up when we make a decision.

• Things you want that you can touch, such

• Incentives

• Thinking at the Margin

• Rational decision-making occurs when benefits outweigh the costs.

• Motivates individuals, businesses

• Services

• This is an action that someone does for

• Goods

Match the following

• Land, Labor, Capital, entrepreneurship

• Factors of Production    

• assigned a specific task

• Division of Labor

• specific jobs to different employees

• Voluntary Exchange

• people willingly trade one item for anot

• Land

• Any natural resource used to produce a g

• Specialization

Match the following

• person takes risks

• Capital

• Man-made tools that help produce a good

• Human Capital

• Any man-made tool used to produce prod

• Labor

• Knowledge and skills

• Entrepreneurship

• Paid workers

• 19.  Physical Capital

1.           Scarcity refers to the situation in which there is a/an _____________ amount of resources to meet __________ wants.

• large, small

• specific, various

• limited, unlimited

• diverse, unique

Lotteries, contests, and merit are all methods commonly used to

• allocate scarce resources

• collect taxes

• improve productivity

• invest in education and technology

The resources used to produce a good or service are called

• goods and services

• needs and wants

• factors of production

• all of the above

Economics is all about

• making money

• making decisions

• government controlling resources

• none of the above

Opportunity cost is best described as the

• sum of all production costs

• most expensive resource used in production

• value of your second choice/alternative

• monetary value of all alternatives forgone when a choice is made

When discussing factors of production, what is an example of physical capital?

• pizza

• oven

• mechanic

• pepperoni