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Economics is a social science because it deals with |
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how people behave while trying to satisfy their needs and wants through use of relatively scarece resources |
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The study of economics is important because |
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it enables us to become better decision makers |
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The basic problem in economics is ________ |
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The four factors of production are: |
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land labor capital and entrepreneurs |
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Land refers to the natural resources needed for production such as: |
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forests, minerals and climate |
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What are the three ecoonomic questions? |
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what, how, and for whom to produce |
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_____________ occurs when a nation's total output of goods and services increases over time |
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When manufactured goods are used to produce other goods and services, they are called: |
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___________ occurs when some necessities have little value, (water); while some non-necessities have a much higher value, (diamonds) |
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Economic products consists of both goods and services that are: |
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useful, relatively scarce, and transferable to others |
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Both ______ and ________ are counted as part of a nation's wealth |
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A nation's wealth refers to the accumulation of those products that are: |
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tangible, scarce, useful, and transferable from one person to another |
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With regard to economic interdependence, the gain in profuctivity and income as a result of increased specialization almost always offsets the cost associated with the loss in: |
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_______ __ _______ is a characteristic of assembly line production |
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What increases efficiency because it allows workers to master a few tasks of ther jobs? |
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An economy at its ___________ ___________ _________ is operating at full potential |
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production possibilites frontier |
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What is the dollar value of all final goods and services and the most comprehensive measure of a country's total profuction output? |
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Gross Domestic Product (GDP) |
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What is a popular model used to illustrate the concept of opportunity cost? |
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production possibilities frontier |
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A production possibilities frontier shows what? |
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the various possible combinations of output that can be profuced when all resources are fully employed |
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When economic growth takes place, the prouction possibilities frontier shifts outward, showing what? |
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that more products are produced than before |
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The production possibilites frontier can not be reached as long as some resources remain ____ |
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Time is a(n) ________ when a manufacturer assigns workers to one task rather than to another |
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A nondurable good lasts for ______________ when used on a regular basis |
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The circular flow of economic activity describes an economy that is free of what? |
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To arrive at an economic decision, a __________ may be used to evaluate alternative choices of action |
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TINSTAAFL - there is no such thing as a free lunch - describes what concept? |
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that everything we do has a cost |
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