Unit 3. Economic Problem (key terms)

What is the study of how societies manage their scarce resources?

• Physics

• History

• Economics

• Biology

What does scarcity refer to?

• Having unlimited resources

• Having limited resources

• Having no resources

• Having equal resources for all

What is the opportunity cost?

• The cost of resources

• The benefit of resources

• What we must give up to get something else

• The total cost of all resources

What are the types of resources used for producing goods/services?

• Plants, Animals, Minerals

• Gold, Silver, Copper

• Land, Labour, Capital, Entrepreneurship

• Water, Air, Fire

What is the process of focusing on one skill and becoming an expert in it?

• Diversification

• Specialisation

• Generalization

• Standardization

What is the economic policy of protecting a country's producers by limiting imports from other countries?

• Barriers to Trade

• Protectionism

• Globalization

• Free Trade

What is a tax on imported goods called?

• Tariff

• Excise

• Taxation

• Subsidy

What is the physical structures such as roads, power lines, or schools that improve business and the quality of life in a place?

• Infrastructure

• Superstructure

• Foundation

• Framework

What is the process of improvement in the quality of life within a country, including improvements in health, education, living standards, and freedom?

• Economic Development

• Industrialization

• Globalization

• Economic Growth

What is the study of how societies manage their scarce resources?

• Physics

• History

• Economics

• Biology