Ch.1 Sec.1 - Scarcity

A need is fulfilled by

• video games
• food
• jewelry
• movie tickets

Tags

12.1.1

The study of how people choose to use scarce resources to satisfy their wants

• choice
• economics
• entrepreneurship
• scarcity

What are wants?

• things, such as food or clothing, that are necessary for survival
• desires that can be satisfied by consuming a good or service
• the physical objects that can be purchased for personal use
• the lack of resources needed to meet human desires

Why must people make choices about the things they desire?

• Producers use the same resources to make different kinds of items.
• Wants are ever changing, so people must substitute new items for old ones.
• People must satisfy their needs first because they cannot afford to satisfy all their desires.
• People's wants are unlimited, but the resources available to satisfy them are scarce.

The ongoing tension of not having enough resources to meet human wants is called

• need
• shortage
• scarcity
• surplus

Into what four categories do economist divide factors of production?

• land, labor, capital, and entrepreneurship
• land, labor, money, and entrepreneurship
• resources, labor, capital, and entrepreneurship
• resources, labor, money, and entrepreneurship

Physical products that can be purchased are called

• bonds
• services
• stocks
• goods

The human time, effort, and talent that go into the making of products is called

• capital
• labor
• knowledge
• scarcity

Societies must decide how goods and services will be produced

• to provide as many jobs as possible for its labor force
• to use scarce resources in the most efficient way
• after determining what delivery systems they have available
• based on the natural resources they own

An important characteristic of entrepreneurship is that they

• develop new products but do not market them.
• make a profit by investing in existing industries.
• take risks to create new kinds of businesses.
• expand distribution systems to reach more consumers.