Economics Guided Reading Answers
ANSWER KEY
Chapter 1
Chapter 1–1
II.D.
the accumulation of those economic products that are tangible, scarce, useful, and transferable
1. scarcity of resources, which results from society not
III.A.
the market
having enough resources to produce all of the things people would like to have
III.B.
the markets in which productive resources are bought and sold
2. A need is a basic requirement for survival and
III.C.
in product markets
IV.A.
the amount of output produced by a given amount of inputs in a specific period of time
IV.B.
They increase productivity.
IV.C.
Government can help provide education and health care; businesses can provide training; individuals can further their own education.
includes food, clothing, and shelter. A want is a way of expressing a need.
3. “There is no such thing as a free lunch.” It means that most things in life are not free because someone has to pay for the production in the first place.
4. a. What to produce? b. How to produce? c. For whom to produce?
5. a. land: natural resources not created by humans;
b. capital: the tools, equipment, machinery, and factories used in the production of goods and services; c. labor: people with all their efforts, abilities, and skills; d. entrepreneur: a risk-taker in search of profits who does something new with existing resources
Chapter 1–3
1. trade-offs
2. decision-making grid
3. Opportunity cost
4. opportunity cost
5. fully employed
6. the process of creating goods and services
6. production possibilities frontier
7. a. description: We need to know what the world
7. maximum combinations
around us looks like. b. analysis: It helps us to discover why things work and how things happen.
c. explanation: If we all have a common understanding of the way our economy works, some economic problems will be much easier to address or even fix in the future. d. prediction: It can help predict what
Chapter 1
Chapter 1–1
II.D.
the accumulation of those economic products that are tangible, scarce, useful, and transferable
1. scarcity of resources, which results from society not
III.A.
the market
having enough resources to produce all of the things people would like to have
III.B.
the markets in which productive resources are bought and sold
2. A need is a basic requirement for survival and
III.C.
in product markets
IV.A.
the amount of output produced by a given amount of inputs in a specific period of time
IV.B.
They increase productivity.
IV.C.
Government can help provide education and health care; businesses can provide training; individuals can further their own education.
includes food, clothing, and shelter. A want is a way of expressing a need.
3. “There is no such thing as a free lunch.” It means that most things in life are not free because someone has to pay for the production in the first place.
4. a. What to produce? b. How to produce? c. For whom to produce?
5. a. land: natural resources not created by humans;
b. capital: the tools, equipment, machinery, and factories used in the production of goods and services; c. labor: people with all their efforts, abilities, and skills; d. entrepreneur: a risk-taker in search of profits who does something new with existing resources
Chapter 1–3
1. trade-offs
2. decision-making grid
3. Opportunity cost
4. opportunity cost
5. fully employed
6. the process of creating goods and services
6. production possibilities frontier
7. a. description: We need to know what the world
7. maximum combinations
around us looks like. b. analysis: It helps us to discover why things work and how things happen.
c. explanation: If we all have a common understanding of the way our economy works, some economic problems will be much easier to address or even fix in the future. d. prediction: It can help predict what