Chapter 1, Section 1 - Review

Define Need:

• A temporary wish or desire.
• A luxury item that is desired.
• A fundamental requirement or necessity.
• An optional choice or preference.

Define want:

• A want is a desire for something that is not necessary for survival.
• A want is a basic need for survival.
• A want is something that is always necessary.
• A want is a requirement for happiness.

Define goods:

• Goods are tangible products that can be bought or sold.
• Goods are items that are exclusively given away for free.
• Goods refer to digital content only.
• Goods are intangible services that cannot be sold.

Define services:

• Services are intangible activities or benefits provided to meet needs.
• Services are always free of charge.
• Services are only provided by government agencies.
• Services are physical goods sold to customers.

Define scarcity:

• Scarcity is the condition where resources are limited in relation to wants.
• Scarcity is the abundance of resources available to meet wants.
• Scarcity refers to the situation where all resources are infinite.
• Scarcity is the ability to satisfy all human desires without limitations.

Define economics:

• Economics focuses solely on financial markets.
• Economics is the study of resource allocation and decision-making in the face of scarcity.
• Economics is the analysis of historical events.
• Economics is the study of animal behavior.

Define shortage:

• A situation where the quantity demanded is greater than the quantity supplied.
• A condition where there is an excess of goods available.
• A balance between supply and demand.
• A situation where the quantity supplied is greater than the quantity demanded.

Define land in relation to economics:

• Land in economics is defined as all natural resources used in production.
• Land is the technology used to enhance production efficiency.
• Land is the labor force involved in production.
• Land refers to the financial capital used in business.

Define labor:

• Labor is the human effort used in the production of goods and services.
• Labor refers to the tools used in manufacturing.
• Labor is the financial investment in a business.
• Labor is the natural resources extracted from the earth.

Define capital in relation to economics:

• Capital in economics is the assets and resources used to produce goods and services.
• Capital is the demand for goods and services in the market.
• Capital is the labor force available for production.
• Capital refers to the total amount of money in circulation.