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Chapter 1 part one
What is Economics?
Question | Answer |
---|---|
What is the study of economics? | Economics is a social science concerned with how limited resources are used to satisfy peoples' unlimited wants. |
What is an example of economics? | The additional workers (resources) available when the population grows will increase economic output. |
What is scarcity? | the limited resources for production relative to the demand for goods and services |
Another name for the Productive Resources of land, labor, and capital. | factors of production |
What is land? | all natural resources, fields, forest, mineral deposits, sea, or nature related/made products |
What is labor? | all human resources, manual, clerical, technical, professional, and managerial labor |
What is capital? | production or man made products, also financial capital or money to acquire factors of production |
An entraperneurs are__________. | individuals who see the possibility for profitable production and organize the resourses to produce a good or service |
What is the body of skills and knowledge that comprises the processes of production? | technology |
What is the money to acquire the factors of production called? | financial capital |
What is the scientific method? | a procedure used by scientists to develop explanations for events and test the validity of those explanations |
The first step of the scientific method is_______. | to observe an event under certain conditions |
The second step of the scientific method is_______. | to devise a hypothesis(explanation) that accounts for an event. |
What is a hypothesis? | a tentative explanation of an event; used as a basis for further research. |
What is the third step of the scientific method? | testing the hypothesis by gathering additional information and observing whether a repeat of the condition assumed by the hypothesis leads to the same result |
What is the fourth step of the scientific method? | tentatively accepting, revising, or rejecting the hypothesis, depending on whether it correctly predicts a repetition of the event under those conditions |
What is economic reasoning? | the application of theoretical and factual tools of economics analysis to explaining economic developments or solving economic problems |
What is a production or consumption good that does not have direct cost? | Free good |
What is any good or service that sells for a price; that is, a good that is not free? | Economic good |