2. Employment of nearly everyone who desires to work. Goods and services that are used together, Other things remaining the same, the higher the price of a good, the greater is the quantity supplied; and the lower the price of a good, the smaller is the quantity supplied, Graph of the quantity supplied of a good by all suppliers at different prices, The price that balances quantity supplied and quantity demanded. Cash payments made by the government to people who do not supply goods, services, or labor in exchange for these payments. An economic model that shows the alternative ways that an economy can utilize it's scarce resources. View Preview. Academic year. In practice, an unemployment level of not more that 4-5% is considered ____ __________. Willing to take the risk to develop a new idea or business, with the goal being to make a profit. The additional utility generated from the addition of one more unit of something. You'll find all questions from this list in all midterms and final exams. Subject. Scarcity is basically the fact that no one can “have it all;” that is, there are limited goods and services to go around. Solution: Solution:. Everyone acts in their own "self- interest" 4) Everyone makes decisions by comparing the marginal costs and marginal benefits of every choice Incentive. The most desirable alternative given up when one makes a decision. A state of either surplus or shortage in a market. This shows the flow of goods and services and the interaction among households, businesses, and banks, This is where producers offer goods and services for sale, This is where firms purchase the factors of production from households. When a producer cannot afford to offer goods or services at current prices. o Adam Smith Key arguments: Division of labor means that production is more efficient People should pursue self-interests because competition is good since it means cheaper products. Economics (University), Economics . Complete each of the following tasks with short paragraphs: a. Everyone’s goal is to make choices that maximize their satisfaction. … This PDF book incorporate economics concepts and choices answer key guide. When a person, company, or country can produce a good or service at a lower opportunity cost than another can. Macroeconomics Unit 1 Basic Economic Concepts. Pure capitalism, in which all economic decisions are made without government intervention. Every choice has a cost (a trade-off). An economic system in which the allocation of resources is heavily controlled by government instead of free market forces. "Let it be" the economic phrase that refers to the government not intervening in a market. The amount bought and sold at the equilibrium price. The power of consumers to decide what gets produced. exports. Natural resources. Follow. Unit 1 Study Guide. Productive equipment or machinery used in production; can include anything--buildings, forklifts, computers, paperclips, etc.... Production Possibilities Frontier (Curve), A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good, Using fewer resources than an economy is capable of using; results in lower production and often unemployment. Unit 1: Basic Economics Concepts Unit 1: Basic Economics Concepts Unit 1: Basic Economics Concepts. Due to scarcity, choices must be made. Explain the relationship between scarcity, choices, and trade-offs The entire economic perspective is based on both scarcity and choices. Economy where the productive resources are allocated by private businesses and individuals. Changes in the amount of resources in the economy. Preview. Decisions based upon the additional benefit and additional cost. The economic condition in which limited resources are met with unlimited wants and needs. A universal problem resulting from resources being limited while people's wants are endless, Alternatives that must be given up when one is chosen rather than another. Driven by profit motive. Land, labor, and capital; the three groups of resources that are used to make all goods and services, Any natural resource provided by nature and used in the production process, Human effort (physical and mental) directed toward producing goods and services. Concentrates on the operation of a nation's economy as a whole. Play this game to review Economics. Legend (Opens a modal) Possible mastery points. When a person, company, or country can produce a good or service at a lower cost than another can. University. A latin phrase that means "all other things held constant". Economics. Any good produced for direct consumption by consumers, Any good produced for indirect consumption by consumers. All natural resources used in the production of goods and services. All exams, questions and answers. An ambitious business leader who's quest for profit leads them to develop and market new goods and services. PLAY. MKT (BI) MKT‑2 (EU) MKT‑2.E (LO) … Products are being produced in the least costly way, The products being produced are the ones that are most desired by society. Changes in technology and productivity. Labor. Some of the worksheets displayed are Period work basic economic concepts 2, Unit 1 basic economic concepts, Unit 1 basic economic concepts, Ap economics microeconomics unit 1 basic economic, Work 1 the basic economic problem, Chapter 1 what is economics section 1 scarcity and the, Ap macroeconomics unit 1… FREE PREVIEW; Unit 1 Summary Video. STUDY. Entrepreneurship. something that induces a person to do or not do a target action. Course. Mahbub Morshed. knowledge or training utilized by workers (labor) in the production of a good. The human effort provided in the creation of goods and services. 1) Society has unlimited wants and limited resources (scarcity) 2) Due to scarcity, choices must be made. The PBL Professor. Adam Smith's idea economies are driven by profit motive and regulated by competition. A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all. 5 Key Economic Assumptions. Every choice has a cost (trade- off) 3) Everyone's goal is to make choices that maximize their satisfaction. Society’s wants are unlimited, but ALL resources are limited (scarcity).