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Economics Chapter 1 Answers. Get a hint. The highest-valued alternative that is given up or sacrificed when choosing to produce or consume one good over another is referred to as: Opportunity cost. 1 / 74.
The economic perspective suggests that Henry will buy the book if: A) the marginal cost of the book is greater than its marginal benefit B) The marginal benefit of the book is greater than its marginal cost C) his income is high D) The book will give him utility and more.
Why is analysis an important part of economics? Study with Quizlet and memorize flashcards containing terms like A fan cannot go to a concert because there are not enough tickets., nondurable consumer goods, a service and more.
Chapter 1/Ten Principles of Economics 5 ANS: B. The overriding reason as to why households and societies face many decisions is that a. resources are scarce. b. goods and services are not scarce. c. incomes fluctuate with business cycles. d. people, by nature, tend to disagree. ANS: A
Durable good A good that has a lifespan of at least three years Nondurable good A good that last for less than three years Consumer good A good intended for final use by consumers, also known as a final good Capital good Goods used to produce other goods such as tools, equipment, factories, manufactured goods etc. (one of the factors of production).
Key Takeaways. Economics is a social science that examines how people choose among the alternatives available to them. Scarcity implies that we must give up one alternative in selecting another. A good that is not scarce is a free good. The three fundamental economic questions are: What should be produced? How should goods and services be produced?
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1. Scarcity means human wants for goods and services exceed the available supply. Supply is limited because resources are limited. Demand, however, is virtually unlimited. Whatever the supply, it seems human nature to want more.
