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Economics Basics- Unit 1 Review Flashcards | StudBud
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Economics Basics- Unit 1 Review
Economics Basics- Unit 1 Review
20 terms
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StudBud Administration
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Review the concepts we've covered in the first unit of economics
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
Microeconomics involves...
The broader economy.
Individuals, households, and businesses.
Inflation, growth, employment, interest rates.
Only households selling resources.
2
What two items must be added for a society to produce outside its PPC?
More Trucks and Workers
More resources and productivity
More resources and new technology
More Resources and land
3
The additional satisfaction or use an individual gets from consuming one more unit is called..
marginal waste
marginal analysis
marginal utility
marginal product
4
Macroeconomics involves....
The broader economy - growth, inflation, unemployment, etc.
Businesses and households.
Individual units that comprise the economy.
Policies of the Federal Reserve Bank.
5
Economics is the study of
People allocating limited resources to satisfy unlimited wants
Government deciding what to produce
Consumers deciding what to buy
People controlling money in an economy
6
The money households spend to purchase goods and services is called..
Spending
Input
Income
Output
7
America is Free-Market Society?
True
False
8
Workers not being well trained might be a reason for
A society that chose to minimize costs
A society operating below their PPF
A society operating at full efficiency
A society operating well above their PPF
9
Marginal Analysis is a decision making tool that compares:
Marginal costs and marginal benefits
Marginal Product and benefits
Marginal utility and benefits
Costs and benefits
10
Who are the two "players" in a basic Circular Flow model?
Households and Businesses
Government and Households
Government and Consumers
Government and Businesses
11
The limited nature of society's resources is known as
Basic Economic Questions
Scarcity
Allocation
Government Assets
12
In a pure socialist economy, which of the following is true?
There is no wealth inequality and no social classes
Economies can grow at a rapid rate
Individuals own the factors of production
Competition helps to keep quality up and prices fair
13
What is a necessary component of a free- market economy?
Workers having power
Even distribution of wealth
Competition
Public Ownership of Resources
14
The four productive resources are
Resources, productivity, tools, and technology.
Stones, clothespins, plastic baggies & straws.
Land, labor, water, and people.
Natural, capital, human resources & entrepreneurship
15
The Circular Flow Model demonstrates how money and productive resources flow through an economy.
False
True
16
What are the two markets in a "basic" Circular Flow model?
Natural and Captial Markets
Resource and Product Markets
Goods and Services Market
Labor and Goods Markets
17
In the Circular Flow model, Households have goods and services, but want productive resources.
False
True
18
All choices entail an opportunity cost
False
True
19
The three basic economic questions are: What to Produce, How to Produce and ...
Who produces?
How to produce?
What to consume?
For whom to Produce?
20
A production possibility curve represents
how many people to hire.
the maximum amount of goods that can be made.
the technology that should be used.
the resources that should be used.
