Sep 11, 2015 · The three basic questions every society must answer in dealing with scarcity are: _________, _______, and ______ ________ to produce. 7 resources required to produce the things we would like to have7.

In this section, you will learn why scarcity is the basic economic problem that faces every society and why scarcity requires us to make choices. • scarcity (p. 6) • economics (p. 6) • need (p. 6) • want (p. 6) • factors of production (p. 8) • capital (p. 8) • capital good (p. 8) • labor (p. 8) • entrepreneur (p. 9)

Chapter 1 Basic Economic Concepts Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 1 Section 1.1 A Look at Wants and Needs Reading Activity—Take Notes …

• Define economics • Describe the “economic way of thinking” • State some important reason for studying economics • Explain the importance of ceteris paribus • List eight economic goals and give examples • Differentiate between micro –and macroeconomics

The document is a worksheet on basic economic concepts from chapters 1 and 2, containing fill-in-the-blank and multiple choice questions. 2. It covers topics like scarcity, the fundamental economic problem, the three basic questions societies must answer, productive resources, and different types of economies.

Chapter 1 The Fundamentals of Economics Economics and You: Adam Smith Directions Answer the following questions providing examples whenever possible to support your written responses. 1. Generally speaking, incentives help to motivate people. Do you think Adam’s Smith idea of “laissez faire” is in agreement with the concept of incentives?

Basic Economic Concepts: The study of microeconomics requires student to understand that, in any economy, the existence of limited resources along with unlimited wants results in the need to make choices. An effective AP course, therefore, begins by introducing the concepts

Chapter 1: Ten Principles of Economics (pgs. 3-17) Chapter 2: Thinking Like an Economist (pgs. 21-34) Chapter 3: Independence and Gains from Trade (pgs. 49-59)

One way to become familiar with key economic words and terms is to use them. This exercise is designed to test your understanding of some economic words and term

Basic Economic Concepts The study of microeconomics requires students to understand that, in any economy, the existence of limited resources along with unlimited wants results in the need to make choices. An effective AP course, therefore, begins by introducing the concepts of