Chapter 1 Review: Economics

Across

1. good intended for final use by consumers other than businesses
3. basic requirement for survival, including food, clothing, and shelter
7. item that wears out, is used up, or lasts for fewer than three years when used regularly
11. alternative that must be given up when one choice is made rather than another
12. simplified version of a complex concept or behavior expressed in the form of a graph, figure, equation, or diagram
14. market in which goods and services are bought and sold
15. monetary value of all final goods, services, and structures produced within a country’s national borders during a one-year period
19. sum of tangible economic goods that are scarce, useful, and transferable from one person to another; excludes services
20. natural resources or “gifts of nature” not created by human effort; one of the four factors of production
22. tool, equipment, or other manufactured good used to produce other goods and services; a factor of production
25. tangible economic product that is useful, transferable to others, and used to satisfy wants and needs
29. something we would like to have but is not necessary for survival
30. meeting place or mechanism through which buyers and sellers of an economic product come together; may be local, regional, national, or global
31. tools, equipment, and factories used in the production of goods and services; one of the four factors of production
32. comparison of the cost of an action to its benefits
33. markets in which productive resources are bought and sold
34. sum of people’s skills, abilities, health, and motivation
35. increase in a nation’s total output of goods and services over time
36. risk-taking individuals who introduce new products or services in search of profits; one of the four factors of production

Down

2. cost of the next best alternative use of money, time, or resources, when one choice is made rather than another
4. social science dealing with how people satisfy seemingly unlimited and competing needs and wants with the careful use of scarce resources
5. assignment of tasks to the workers, factories, regions, or nations that can perform them most efficiently
6. productive resources needed to produce goods; the four factors are land, capital, labor, and entrepreneurship
8. measure of the amount of output produced in a specific time period with a given amount of resources; normally refers to labor, but can apply to all factors of production
9. monetary worth of a good or service as determined by the market
10. diagram representing all possible combinations of goods and/or services an economy can produce when all productive resources are fully employed
13. people with all their abilities and efforts; one of the four factors of production; does not include the entrepreneur
16. quality of life based on ownership of necessities and luxuries that make life easier
17. good that lasts for at least three years when used regularly
18. fundamental economic problem facing all societies resulting from a combination of scarce resources and people's virtually unlimited needs and wants
21. apparent contradiction between the high value of a nonessential item and the low value of an essential item
23. market economy in which privately owned businesses have the freedom to operate for a profit with limited government intervention
24. mutual dependence of the economic activities of one person, company, region, or nation on those of another person, company, region, or nation
26. division of work into a number of separate tasks to be performed by different workers
27. work or labor performed for someone; economic product that includes haircuts, home repairs, and forms of entertainment
28. ability or capacity of a good or service to be useful and give satisfaction to someone
32. a social movement that was aimed at promoting the interests of consumers