Chapter 1-Section 1 Questions and Answers

Reviewing Key Concepts Relationship between the below concepts Wants by consuming a good or a service. Scarcity happens when not enough resources to satisfy human wants. Consumers buy or use goods or services Producers are makers of goods or provider of services Entrepreneurship is the vision, skills, and risk-taking Which is needed to create and run businesses Wants Scarcity Consumer Producer Factors of production Entrepreneurship Factors of production are the resources needed to produce Goods and services

2. Wants are desires that can be satisfied by consuming a good or service; needs are necessary for survival. Food is a need, but you make choices about the food you eat. 3. Consumers forces choices on what they are able to buy with their limited resources. Producers: influences which factors of production to use and in what amounts Key Concepts Questions and Answers

4. Some of the services I use every day are items from the grocery store, services of banking, post office, or insurance company. 5. Land: store occupies land; natural resources used to build stores and products. Labor: managers, sales people, delivery drivers, technicians. Capital: store, warehouses, delivery trucks. Entrepreneurship: ideas, energy, and effort that make the store a success. 6. unlimited wants, What to produce?, How to produce?, For whom to produce?, Limited resources. Answers Key Concepts Continued

7. This scenario is an example of a shortage, because it is a temporary situation. 8. They were able to should show an understanding of the vision needed to succeed. 9. During lunch when you have to make food choices. 10. You should demonstrate an understanding of the concept of scarcity. Questions and Answers Critical Thinking