What is a Factor of Production?

Resources used to produce goods/services

How is the Bush presidency relevant to the "Guns or Butter" Economic Model?

Bush spent money on producing military and consumer goods

Producers cannot offer goods and services at current prices

What does the "Guns or Butter" Economic Model say about production?

More military goods produced=less consumer goods produced

What is an Opportunity Cost?

Most desirable alternative given up

Which of the following is NOT an Entrepreneur

Someone who sells computer products

How has propaganda/imagery impacted US economics?

Increased production of needed goods durng wars

How people choose to use resources to satisfy their wants

Limited Quantities of resources to meet unlimited Wants

What is the difference between a Production Possibilities Curve and Frontier

Curve is a line and Frontier is a graph

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Economics- Quiz 1: Basics of Economics

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Review for Quiz 1

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Questions 19

Answers

1
Jerry Seinfeld had to decide between buying more channels illegally/legally. This is called
Production Possibilities Frontier
Production Possibility Curve
Thinking at the Margin
Law of Increasing Cost
2
What is a Factor of Production?
A finished good or service
Resources used to produce goods/services
Human-made objects used to destroy worthless things
Knowledge/skills a worker gains from their job
3
How is the Bush presidency relevant to the "Guns or Butter" Economic Model?
Bush spent money on producing military and consumer goods
Bush refused to spend money on producing any goods
Bush sold military goods to Iran to fund the Contras
Bush used military goods to trade for consumer goods
4
What is this?: Cost of one resource increases when production of another resource increases
Rosenberg's Law
Law of Production Possibilities
Law of Supply and Demand
Law of Increasing Cost
5
Bob has to decide between eating a burger or chicken nuggets. What decision type is this?
Burger or Nugget Decision
Trade-Off
Production Possibility
Thinking at the Margin
6
What is a Shortage?
Producers cannot offer goods and services at current prices
Using resources to maximize production of goods/services
Limited Quantities of resources to meet unlimited Wants
Using fewer resources that an economy is capable of using
7
Smallz Inc. uses all its resources to maximize production. This is called...
Supply and Demand
Opportunity Cost
Efficiency
Factors of Production
8
Which of the following is NOT a Factor of Production?
Guns or Butter
Labor
Land
Capital
9
What does the "Guns or Butter" Economic Model say about production?
More military goods produced=more consumer goods produced
Military goods are more important than consumer goods
More military goods produced=less consumer goods produced
Consumer goods are more important than military goods
10
Which of the following is NOT on a Decision-Making Grid
Costs
Law of Increasing Cost
Benefits
Opportunity Cost
11
What could be the Opportunity Cost for a Professional Boxer?
Winning the title
Loss of life
Money needed to fight
Opportunity for fame and pride
12
What is an Opportunity Cost?
Cost of doing business
Most desirable alternative given up
Buying more or less of something
Opportunities that are expensive
13
How does availability of a product impact price of the product?
Less Available=Higher Price
More available= Higher Price
Less available=Lower Price
More Available=Lower Price
14
Which of the following is NOT an Entrepreneur
Using new media to market product in a way never done before
Railroad Tycoon who creates a faster railroad
Inventing the Cotton Gin and selling the machine
Someone who sells computer products
15
Rosenberg Inc. is not using all the resources that they are capable of. This is called...
Availability
Supply and Demand
Efficiency
Underutilization
16
How has propaganda/imagery impacted US economics?
Encouraged people to become Entrepreneurs
Make Americans feel guilty for trading with foreign nations
Created a need for a new government
Increased production of needed goods durng wars
17
What is Economics?
Money, Business, and Financial Stuff
The relationship between the brain and behavior
How people choose to use resources to satisfy their wants
Institution through which society makes/ enforces policies
18
What is Scarcity?
Using resources to maximize production of goods/services
Using fewer resources that an economy is capable of using
Limited Quantities of resources to meet unlimited Wants
Producers cannot offer goods and services at current prices
19
What is the difference between a Production Possibilities Curve and Frontier
Curve is a line and Frontier is a graph
Curve shows production and Frontier shows availability
Curve is a graph and Frontier is a line
Frontier shows production and Curve shows availability

Economics- Quiz 1: Basics of Economics Flashcards | StudBud