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Unit 1--Economics Flashcards | StudBud
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Unit 1--Economics
Unit 1--Economics
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A look at the Fundamental Laws of Economics #DCEcon
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
Cost benefit analysis, how does one know which option should be chosen from the current list?
marginal cost must be greater or equal to marginal benefit
marginal benefit must be greater or equal to marginal cost
marginal cost must be more than marginal benefit
marginal benefit must be less than marginal cost
2
Jay wants a phone that other people also want to buy. But there are not enough phones? This is
Opportunity cost
Production cost
Scarcity
Rarity
3
Define Scarcity
Unlimited wants, unlimited resources
Unlimited wants, limited resources
Limited wants, limited resources
Unlimited resources, limited wants
4
Specialization refers to...
the use of the four factors of production
arranging work so that individual workers do fewer tasks
the process of creating goods and services
Performing one task better than another
5
A rivalry among different businesses is called?
promotion
comparative advantage
competition
monopolies
6
What is the economic term for distribution of resources?
move
economics
take
allocate
7
Which term defines the government's rules and restrictions on economic activity?
Regulation
Laissez-faire
Deregulation
Consumption
8
What is economic interdependence
The ability to produce all goods and services
The reliance on each other to provide goods and services
The result of division of labor
The relationship between the four factors of production
9
Which of the following is a major disadvantage of Socialism?
The citizens lack choices when choosing goods and services
It takes the incentive out of people working hard
It creates a class system
It creates high taxes for its citizens
10
The study of economics helps people to
become better decision makers
make wise decisions for political candidates
understand the free-enterprise system
all of the above
11
What is the intent of most government regulations in industry?
to ensure quality and safety of products
to promote higher educational standards
to discourage over consumption
to decrease unemployment rates
12
Put the payments of Land, Labor, Capital, and Entrepreneurship in the correct order.
Rent, wages, interest, profit
Wages, profit, interest, rent
Salaries, profit, rent, interest
Profits, interest, rent, wages
13
What is the opportunity cost of moving from point B to point C
25 items of clothes
115 pounds of food
35 pound of food
95 items of clothes
14
Which of the following is an example of how the US government regulates the economy?
consumer protection policies
Inflation
Free Market
Unrestricted trade
15
You decide to pay $8 to see a movie instead of buying a $8 meal. What's the opportunity cost
time spent watching the movie
Money paid to see the movie
Enjoyment received by going to the movie
Satisfaction missed by not eating the meal
16
When does a rational decision occur?
When marginal benefits equals or exceeds marginal costs
whenever a decision is made
When marginal costs equals or exceeds marginal benefit
When marginal costs exceeds marginal benefit
17
The BEST explanation of why there will ALWAYS be scarcity is because:
Natural disasters create frequent shortages
governments create scarcity to keep people wanting more
People and their tools are inefficient
whiles people's wants are unlimited resources are limited
18
What is a major advantage of Communism(Command)?
The gov't can easily switch from one business to the next
The gov't limits the taxes paid by its citizens
The gov't provides all wants
The gov't gives citizens a variety of goods and services
19
For something to has value, it must
never go out of style
cost a lot of money
be on sale
have utlilty
20
which of these broad goals are consistent wit the goals of capitalism?
freedom, security, and growth
growth, price stability, government control
efficiency, growth, and freedom
equity, stability, and security
21
Joseph has decided to lay off two workers and replace them with machines. Joseph is replacing
Land with Labor
Entrepreneurship with labor
Capital with entrepreneurship
Labor with capital
22
In order to reach point D what types of advancements would be needed?
resources or technology
public goods
capital goods
increasing marginal costs
23
Which of the following is NOT an economic question?
Where to produce?
For whom to produce?
What to produce?
How to produce
24
What letter cannot be reached?
G
C
H
B
25
Which of the following is NOT a factor of production?
Capital
Labor
Land
Profit
26
Which letter shows a insufficient use of resources?
D
G
H
C
27
All of the following are roles of a government in a mixed market economy(Socialism) except
protecting private property rights
provide public goods
redistribute income
Guaranteeing jobs
28
Which of the following is NOT a capital good?
a television bought for a home at Walmart
A cash register at a clothing store
an oven at a bakery
A bulldozer at a construction site
29
An important implication of scarcity is that:
People of will always be poor
People are not able to use all available resources
it is a problem that easily abolished
people must make a choice
30
Which of the following lists the four factors of production?
land, labor, capital, entrepreneurs
Labor, needs, capitals, entrepreneurs
Land, Labor, wants, entrepreneurs
Land, Labor, capital, scarcity
