1. 1. What is the basic economic problem facing all societies?
2. How is need different from want?
3. What do the letters TINSTAAFL stand for, and what does the term mean to consumers?

2. 4. What are the three basic questions societies have to answer about the way their resources are used?
5. List the factors of production and define each one. 6. What is production? 7. What are the four key elements of the study of economics? Explain briefly why each one is important.

3. Chapter 1-2 Goods, Services, and Consumers 8
Chapter 1-2 Goods, Services, and Consumers 8. What is scarcity in an economic sense? 9. What is the difference between a consumer good and a capital good? 10. What kind of economic product is a service? 11. What is a consumer?

4. Value, Utility, and Wealth 12. To what does value refer. 13
Value, Utility, and Wealth 12. To what does value refer? 13.What is the paradox of value? 14. Utility—What is required for something to have value? 15. What is wealth?

5. The Circular Flow of Economic Activity 15
The Circular Flow of Economic Activity 15. What is a key feature of circular flow? 16. What is a factor market? 17. Where do individuals spend their income from the resources they sell?

6. Productivity and Economic Growth 18. What is productivity. 19
Productivity and Economic Growth 18. What is productivity? 19. How do division of labor and specialization affect productivity? 20. In what ways can government, businesses, and individuals invest in human capital?