Basic Economics 30. Explain what a comparative advantage is? 31. What is the advantage of division or specialization of labor? 32. Define blue collar labor? 33. Define white collar labor? 34. Describe labor-intensive work? 35. Define economy of scale and how it applies to businesses? 36. What is an opportunity cost? 37. What is a trade-off? 38. Name the four factors of production? 39. This is an economy where people provide most of their needs on their own? 40. This is an economy where the government is in control of most economic processes? 41. This type of economy has individuals in control of most economic choices? 42. This economic system allows individuals many choices but has the government run parts of the economy? 43. This is a business that is owned by a single individual? 44. Name some advantages and disadvantages of this type of business? 45. This is a business operated by two or more persons? 46. What are the advantages and disadvantages? 47. This type of business has many partial owners? 48. This term describes a person who owns part of a corporation? 49. Explain the concept of limited liability? 50. These are service oriented business or charities? 1. How is economic activity circular? 2. What do businesses give consumers for their money? 3. What do individuals get from businesses and the government for their labor? 4. What do citizens get from their government for their tax money? 5. Define wants? 6. Define needs? 7. What are goods? 8. What are capital goods? 9. What are services? 10. What is scarcity? 11. Why is scarcity important economically? 12. Why two factors determine something’s price? 13. What is supply? 14. What is demand? 15. What is the term for the point where supply and demand meet to determine a price? 16. Define a shortage in terms of supply and demand? 17. What is a surplus in terms of supply and demand? 18. What does the economic law of demand state? 19. What is the law of diminishing utility? 20. Define elasticity as it refers to price? 21. What is elastic demand? 22. What is inelastic demand? 23. What is disposable income and how can it affect demand? 24. What is a substitute good? 25. What is a complementary good? 26. What does the law of supply state? 27. Explain the concept of diminishing returns? 28. What is productivity? 29. How can productivity affect price? 30. Explain what a comparative advantage is?