Unit 1 - Fundamentals of Economics (Review)

Define Need

• Something necessary for
  survival

• Desires that be satisfied by
  consuming a good, service, or
  leisure activity.

Define Want

• Something necessary for
  survival

• Desires that be satisfied by
  consuming a good, service, or
  leisure activity.

Organize these options into the right categories

Groups:

(a) Need

,

(b) Want

• 
• Water

• Food

• Xbox

• Phone

• 

Goods are ​ (a)   products that ​ (b)   peoples wants or needs.

• physical
• actions
• satisfy
• serviced

Define Services

• Actions or activities performed for a fee that is satisfy peoples needs or wants

• Physical products that satisfy people's wants or needs.

Scarcity is the (a)   availability of resources relative to unlimited wants.​

• limited
• maximum

Organize these options into the right categories

Groups:

(a) Land

,

(b) Labor

,

(c) Capital

• Machine

• Robot
• mountain

• 
• forest

• Factory
• Hammer

• 
• Teacher

• Computer
• Farmer

• field

• river

• Engineer

• lake

• Mechanic

• cow

• 
• Artist

This is an example of what economic principle?

There are only a limited number of seats available for a concert, but many people want to attend.

• Scarcity

• Marginal thinking

• Opportunity cost

• Incentives

This is an example of what economic principle?

If you spend money on a new phone, the option you lost is the vacation you could have taken with that money.

• Scarcity

• Opportunity cost

• Marginal Thinking

• Incentives

This is an example of what economic principle?

A restaurant owner considers whether to stay open for an extra hour, weighing the cost of keeping the staff and lights turned on.

• Invisible Hand

• Opportunity cost

• Marginal Thinking

• Incentives