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?

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.

Chapter 1-2Goods, 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?

Value, Utility, and Wealth12. 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?

The Circular Flow of Economic Activity15. 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?

Productivity and Economic Growth18. 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?