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Econ Unit #1: Foundations of Econ Flashcards | StudBud
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Econ Unit #1: Foundations of Econ
Econ Unit #1: Foundations of Econ
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Questions
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Answers
1
In Economics, a
trade-off
involves...
Profits and losses
Goods and services
Alternative Choices (what you gain)
Wants and needs
2
If society is currently making 10 Good B's, how many Good A's are being produced?
2
3
unattainable
1
3
Opportunity Cost is....?
The cost of an item, plus what you gain from your choice.
The next best thing that you are giving up or missing out on
What you gain based on your choice
Just have the government solve all of your problems
4
Who benefits when an entrepreneur succeeds?
The entrepreneur and the consumers only
The entrepreneur, consumers, and workers only
The entrepreneur, consumers, workers, and the government
The entrepreneur only
5
Refer to the diagram of the production Possibilities Curve - point B shows?
that society is better off producing guns instead of butter
Combos of Guns & Butter that society can produce efficiently
that this society prefers Butter to Guns
Guns & butter R identical 2 each other
6
Which factor of production consists of tools, equip, & machinery used to produce other goods?
Capitol
Land
Capital
Labor
7
In economics, what is a “good”?
Something that does not involve any opportunity cost
Something that has a low marginal utility.
Something held in high esteem
Something tangible that satisfies a want or desire
8
All of the following are true of a sole proprietorship EXCEPT...
The owner does not have to share profits
The owner takes all of the risk (unlimited liability)
It is easier to start up than other business forms
It is easy 4 the business to raise money by selling stock.
9
What is the basic fundamental problem facing all societies?
Unemployment
Labor shortages
Scarcity
Diminishing marginal utility
10
According to an economist, every decision we make has...
a marginal reward
an opportunity cost
negative consequences for all Mr. O's students
a dollar value
11
A command economy is one in which...
decisions are made by a central government.
Decisions on how to use products and services come from Vladimir Putin
private individuals like you & me decide how to use resources.
resources are used according to custom or tradition.
12
In order to have a high value, a good has to have which qualities?
Utility and Scarcity
Capacity only
Utility and Capacity
Utility only
13
Which factor of production would a Steve Jobs, Henry Ford, Bill Gates, or Mark Zuckerberg be?
Labor
Land
Capital
Entrepreneurship
14
Which factor of production would chewing gum be?
Land
This is not a factor of production
Labor
Capital
15
In Economics, what is
value
?
What you give up in order to do what you did.
A subjective positive feeling we get when we purchase a good
The cost of the next best alternative
A worth that can be expressed in dollars and cents
16
If you ate two pieces of pizza, “marginal utility” would best describe...
How you felt from eating the first piece
How you felt before you ate the first piece
How you felt from eating the second piece
How you felt some time after eating both pieces.
17
In a free market capitalistic economy, who determines which products are produced?
Consumers
The government
Business owners
The workers
18
Almost all economies today are mixed, ours would best be described as which of the following?
Command economy
Traditional economy
Market economy
Religious economy
19
Look at the pic of the circular flow model - Where would an individual give the 4 Factor of Production to?
Factor Market
Bernard's mixtape
Business
Product Market
20
In the circular flow chart the individual is buying a CPU. Who produces the CPU?
Business
Product Market
Factor Market
Individual
21
In economics, what is a market?
An arrangement that allows workers to “sell” their labor.
A place that allows buyers and sellers to exchange products.
A physical place (store) where consumers can buy products
A place where goods are sold but not services
22
An economic system is...
a way of studying economics
organized way that a society provides 4 the wants and needs
A way of electing leaders to make economic decisions
graph that shows the different combos of goods and services
23
Which factor of production would a robot be that paints new cars?
Labor
Land
Entrepreneurship
Capital
24
What does it mean to say that something is scarce?
It satisfies a desire
It is limited in amount
It is intangible
It is plentiful
25
Capitalism and a free enterprise economy is most like which economic system?
Religious
Market
Command
Traditional
26
Think about what the letters in the term “
TINSTAAFL
” stand for. What is the point of this term?
Needs are necessary for life but wants are not.
Everything has a cost.
People always want more than they have.
The more you consume of something, the less satisfying it is
27
Characteristic of a
CFME
means that people are able to choose their jobs and their employer?
Private Property Rights
Voluntary Exchange
The Profit Motive
Economic Freedom
28
Where would
Westborn Market
(grocery store) fall on our Circular Flow Chart?
Factor Market
Product Market
Individual
Business
29
If you are buying goods, where would Amazon.com fit into our Circular Flow Chart?
Land
Capital
Product Market
Factor Market
30
In economics, what is a “service?”
A certain trade or form of labor
Something you can touch or perceive with the senses
Something done to capital to keep it operating
Something intangible that satisfies a want or desire
31
What is the Opportunity Cost of going from producing 6 Good B's to producing 10 Good B's?
4 Good B's
No opportunity cost
1 Good A
4 Good A's
32
Which political philosopher was a proponent of capitalism & wrote about the econ idea of value?
Karl Marx
Adam Smith
Bernie Sanders
Kanye West
33
In a free market capitalistic economy, the government does all of the following EXCEPT...
regulates (makes rules) to ensure competition
protects against false advertising and dangerous products
determines who can afford the products that are produced.
provides some goods and services
34
A market economy is one in which...
resources are used according to custom or tradition.
decisions about resources are made by a central government.
private individuals like you & me decide how to use resources.
decisions about resources are made by consulting texts.
35
If society is producing 3 Good A's how many Good B's are simultaneously being produced?
0
3
12
6
36
We have to make decisions about what wants to satisfy because what two things are in conflict?
Marginal benefits and Marginal rewards
Wants and desires
Unlimited wants and limited resources
Trade-offs and opportunity costs
37
Look at the pic of the circular flow model. Where would an individual buy a good/service from?
Product Market
Capitol
Factor Market
Business
38
Describes a business in which all partners are equally responsible 4 managing the business?
A limited partnership
A general partnership
a sole proprietorship
A corporation
39
All of the following are true of corporations EXCEPT...
It is more difficult to start up than other business forms.
The owner takes all of the risk (unlimited liability)
Easy for the business to raise money by selling stock.
They have to follow a lot more government rules
40
Which characteristic of a
CFME
encourages people to work to improve their economic well-being?
Economic Freedom
Competition
Voluntary Exchange
The Profit Motive
41
Which characteristic of a
CFME
means that people are free to engage in market transactions?
Voluntary Exchange
The Profit Motive
Private Property Rights
Competition
42
According to the concept of diminishing marginal utility, what is true?
The more you get, the more you want.
Productive resources are without limit
The more you consume of something, the less satisfying it is
At a certain point, scarcity causes us to make less and less
43
Which factor of production consists of natural resources found in nature?
Entrepreneurship
This is not a factor of production
Land
Labor
44
Which of the following is
NOT
one of the 3 basic economic questions that all societies must answer?
Why to produce
For whom to produce
What to produce
How to produce
45
Refer to the diagram of the production Possibilities Curve - The combo of guns & butter on Pt C
doesn't matter because its inconsistent w/ consumers wants
is unattainable, given currently available resources & tech
is attainable, but inefficient - not using all of resources
indicates high opportunity costs.
46
Characteristic of a
Capitalistic Free Market Econ
means that there is a struggle among producers to make good products?
The Profit Motive
Economic Freedom
Competition
Private Property Rights
47
A traditional economy is one in which...
decisions about how to use resources are made by a religious text
resources are used according to custom or tradition.
Made by private individuals like you and me
all decisions are made by Vladimir Putin
48
According to the Production POssibility Frontier point A is...?
attainable and efficient
inefficient
efficient
unattainable
49
Which factor of production is the workers and their skills?
Entrepreneurship
Labor
Capital
Land
50
characteristic of a
capitalistic free market economy
- people control their own possessions?
Private Property Rights
Voluntary Exchange
The Profit Motive
Competition
