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Economics Basics Flashcards | StudBud
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Economics Basics
Economics Basics
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#economics
Flashcards
22 cards
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Questions
22
Answers
1
Using resources to maximize productivity is known as what?
marginal thinking
production
self-interest
efficiency
2
What are physical objects, such as clothing or shoes, known as?
goods
services
wants
markets
3
The study of how people seek to satisfy their needs and wants by making choice is known as what?
psychology
biology
economics
philosophy
4
Decisions in a mixed economy are made by what?
firms and government
government
consumers and firms
entrepreneurs
5
The value of the next best alternative is known as the what?
opportunity cost
benefit
shortage
tradeoff
6
A person who organizes the factors of production is known as what?
entrepreneur
producer
totalitarian
general manager
7
Which two items best describe a command market?
unlimited capital and high wages
free market and unlimited government
self-interest and voluntary exchanges
government directives and regulation of markets
8
Which of the following best describes the economic law of comparative advantage?
producing goods at lower opportunity cost than competitors
producing goods with an absolute advantage over competitors
producing goods cheaper than competitors
producing goods in greater quantities than competitors
9
A decision-making problem between two possible moral choices, neither of which is acceptable or preferable is what?
economic problem
ethical dilemma
apathetic attitude
procrastination
10
Which of the following provide motivation to pursue needs and wants?
costs
incentives
scarcity
natural resources
11
The factors of production are what?
limited, regulated, abundant
goods, services, factories
land, labor, capital
scarce, available, open
12
Which of the following best describes the cost vs. benefits principle?
choosing something despite the condition of scarcity
choosing something with no costs
choosing something when there are no tradeoffs
choosing something when benefits are greater than costs
13
Using an economic principle to pose and answer questions about pattern of events or behavior is known as
an ethical dilemma
economic naturalism
self evident freedom
natural rights
14
Which of the following best describes a pure free market?
free market and unlimited government
self-interest and voluntary exchanges
competition and regulation
unlimited capital and high wages
15
The branch of knowledge concerned with production, consumption, and transfer of wealth.
psychology
economics
marketing
government
16
Term for a process where natural aptitude is used to determine who is most suited for a task.
specialization
production possibilities
diversification
efficiency application
17
What condition causes people to distinguish between needs and wants?
scarcity
self-interest
law of supply and demand
opportunity cost
18
What two character traits are assumed of people that act in a capitalistic market system?
rational and self-interested
productive and thrifty
greedy and hardworking
creative and risk averse
19
Family, government, economy, education, and religion are five of the most basic what?
products
conglomerations
myths
institutions
20
People who create and sell products or services are known as what?
borrowers
consumers
workers
producers
21
Limited resources and unlimited desires best describe the concept of what?
natural resources
scarcity
sunk cost
opportunity cost
22
The basic economic problem, the gap between limited resources and theoretically limitless wants, is what?
commodity
opportunity cost
incentives
scarcity
