Consumers are powerful because

they drive decisions about what to produce

A graph that shows alternative ways to use an economy's resources is called

a production possibilities curve

Paradox of value refers to

high value of nonessential item, low value of essential item

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Economics Ch 1 Test Review

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Ch 1 Test Review

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Questions 14

Answers

1
when a nations total output increases over time, the nation experiences
economic interdependence
an expansion of the possibilities cure
a decrease in gross domestic product
economic growth
2
The most desirable alternative given up as the result of a decision is called
thinking at the margin
an opportunity cost
guns or butter
a trade-off
3
Consumers are powerful because
they help decide a business's opportunity costs
they drive decisions about what to produce
their interests force producers to have ethically
they have more rights than corporations
4
Which of the following is an example of physical capital?
water
flour
microwave
employees
5
All human made goods that are used to produce other goods, tools and buildings
land
labor
physical capital
entrepreneurship
6
The skills and knowledge gained by a worker through education, and experience
entrepreneurship
labor
capital
human capital
7
The efficient use of scarce resources is called
scarcity
productivity
capital
investment
8
A graph that shows alternative ways to use an economy's resources is called
a supply curve
a demand curve
a production possibilities curve
a production possibilities frontier
9
Paradox of value refers to
contradiction of what consumers want and need
contradiction between gross domestic product & market vlaue
high value of nonessential item, low value of essential item
high value of essential item, low value of nonessential item
10
Why are all goods and services scarce?
all resources are scarce
some goods cost more than others
some people want to have more goods than others
some things are needs and others are wants
11
A situation in which a good or a service is unavailable is called
communism
scarcity
economics
shortage
12
The study of economics involves
exploring how people deal with the problem of scarcity
all of the answers
studying how things are made, bought, sold and used
explaining how incomes are earned and how jobs are created
13
An alternative that we sacrifice when we make a decision is called
guns or butter
thinking at the margin
a trade-off
an opportunity cost
14
An ambitious risk taking leader who combines land labor and capital to create a new service
laborer
entrepreneur
CEO
inventor

Economics Ch 1 Test Review Flashcards | StudBud