The New Basics of Economics

Guns v. Butter refers to the choices faced by government between spending money on military or domestic needs.

Economics is the study of the choices people make so as to satisfy their needs and wants.

The robots used in a auto assembly plant is an example of which factor of production?

This economist wrote the Wealth of Nations.

Scarcity is a condition that applies to only poor countries and not rich countries like the United States.

Point E on this production possibilities curve represents a maximum level of production.

A service is an action or activity that one person performs for another person.

Who is the father of economics?

Demand is the ability and willingness to purchase a product.

What is a physical object created to satisfy needs and wants?

According to Karl Marx, capitalism will eventually collapse and lead to which of the following economic systems?

In a mixed market economy most economic decisions are made by the government with some made by individual & businesses.

An economic good is work a person does for someone else while a service is a physical object.

Who was the economist who argued in his book the Communist Manifesto that capitalism would implode & lead to communism?

In a market economy most economic decisions are made by

Economics deals with the choices people make when they face scarcity.

Which term means the act of giving up one benefit in order to gain another greater benefit?

When you make a purchase with a credit card, the bank pays for the purchase, then you repay the bank.

What is a situation in which people's needs and wants are greater than the goods and services to satisfy them?

Which term applies to Bill Gates?

A shift to the right of a production possibilities curve represents economic growth.

Adam Smith believed that a market economy will lead to positives results on it's own as if guided a an invisible hand.

Which of the following refers to a service?

According to Karl Marx, capitalism will eventually collapse and lead to communism.

Which of the following is not an example of the factor of production called physical capital?

Which of these is a factor of production?

What is the purpose of a production possibilities curve?

Which of the following countries have a mixed market economy?

According to the law of demand when the price of a product increases people will more of that product.

Which of the following countries are examples of mixed command economies?

Which of the following is an example of the factor of production called land?

What does a point D on this production possibilities curve represent?

Who was the economist who championed the system of free market capitalism in his 1776 book the Wealth of Nations?

The knowledge and skills that a doctor acquires to do their job is an example of human capital.

The opportunity cost of waking up early to go to a job interview is the money you spend on gas to drive there.

What is the price of one currency in relation to another currency?

Which of the following is an example of the factor of production called labor?

Economic choices involve trade-offs.

A debit card draws money from a checking account and represents one's own cash.