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test 2 - 1 Part of the Economic Problem is that human wants...

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1. Part of the Economic Problem is that human wants are insatiable. That is, humans seem to always desire more goods and services. 2. The process of production is determined by the factors of production which are All of the above used for creating output. 3. In the Wealth of Nations, the distribution of income and wealth was explained by the concept of productivity (output per worker) 4. Any point inside the frontier (curve) describes an economy with Unemployment or Under- employment of one or more of the four basic resources. 5. In the Circular Flow example, there are 5 un-employed people at the present time. 6. In the Circular Flow example ... if all of the units produced are “fast food cheeseburgers”, the “utility” in any one particular cheeseburger might be considered both a. and b. according to our course THEME about “choices” 7. In the Circular Flow example, the amount of Revenue that is flowing into the Business sector is $5000 . 8. Part of the Economic Problem is that resources are limited . That is, we have a fixed amount of these available at any one time. 9. Economic efficiency is gaining the most output to maximize consumer utility with a given amount of input.
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