Economics Review Chapter 1 "Reviewing key terms" 1) Economic products designed to satisfy people's wants and needs are called consumer goods.
2) The value of a CD player can be expressed in dollars and cents.
3) Haircuts, repairs to home appliances, and entertainment are examples of services.
4) Scarcity arises because society does not have enough resources to produce all the things people want or need.
5) The opportunity cost of going to a football game instead of working would include the money not earned at your job.
6) Human Capital is the sum of skills, abilities, health, and motivation of people.
7) Utility is another name for the capacity of a product to be useful.
8) The only factors of production that are themselves the result of earlier production are capital goods.
9) Land, labor, entrepreneurship, and capital are factors of production.
10) People who use goods and services to satisfy their wants and needs are called consumers.
"Reviewing the Facts" -section 1 1) Explain why economists say there is no such thing as a free lunch? They say that because if they're giving it to for free that probably means there going to raise prices or somehow charge more to make up for the "free lunch".
2) Identify the cause of scarcity.
The cause is because society doesn't have enough resources to produce all the things people want or need.
3) List the basic economic questions each society faces.
What to produce, how to produce , and for whom to produce.
4) Explain why economics is considered a social science.
Because it deals with the behavior of people as they cope with the fundamental Problem of society.
-Section 2 5) Explain the meaning of a trade off.
It's basically and alternative choice, or another option that you have.