In a Free Market Economy the decision of what is made and how much is often based on

What people want, need and available resources

Producers want to make a good at the lowest cost possible to maximize their profit

if they don't sacrifice too much quality

Have to decide what, how and how much to produce

To increase profit (profit margin) a producer wants to (choose 2)

Be able to charge a higher price while still selling more, Be able to lower Production cost without sacrificing quality

Is any man made item used to produce a good and service

The non man-made materials used to produce a good/service

Societies (Choose two)

Take different approaches to the question of, who gets what, Need to decide how goods/services are distributed

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Economics Basics Review 1

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Economics

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Questions 16

Answers

1
Producing a good is the final stage of the wants-satisfaction chain
True
False
2
Factors of production are combined to produce goods and services that people want
False
True
3
The goal of a producer is to make goods/services that are in low demand (not wanted/needed)
False
True
4
The purpose of consumption is to satisfy a want or need
False
True
5
Which of the following is not a factor of production
Finished Product
Land
Capital
Labor
6
In a Free Market Economy the decision of what is made and how much is often based on
Available resources
What people want
What people want, need and available resources
What people need
7
Labor is
skills of people working to produce a good/service
All answers are correct
The “people power” behind production of goods and services
knowledge+energy of people working to produce good/service
8
Producers want to make a good at the lowest cost possible to maximize their profit
only if they know they can sell their good for more money
never
if they don't sacrifice too much quality
at all times
9
The goal of a producer is to raise production cost
False
True
10
Societies
Have to decide how much to produce
Have to decide what, how and how much to produce
Have to decide what to produce
Have to decide how to produce goods/services
11
To increase profit (profit margin) a producer wants to (choose 2)
Raise production costs without being able to raise prices
Charge a higher price without lowering production costs
Be able to charge a higher price while still selling more
Be able to lower Production cost without sacrificing quality
12
Capital is
the land used to farm
Is any man made item used to produce a good and service
The energy of people involved in the production process
Is not part of the production process
13
Distribution
Is the act of making a product available to the people
Gets goods/services to the maket
All answers are correct
Is an important part of the wants-satisfaction chain
14
Opportunity Cost is everything except
what a person gave up(did not receive) after making decision
the benefit not received after making a decision
always about money
part of every decision and the tradeoffs involved
15
Land is
Not part of the production process
In no way an important factor of production in all cases
The non man-made materials used to produce a good/service
The “people power” behind production of goods and service
16
Societies (Choose two)
All take the same approach to the question of, who gets what
Have no influence over "who gets what"
Take different approaches to the question of, who gets what
Need to decide how goods/services are distributed

Economics Basics Review 1 Flashcards | StudBud