What are the Factors of Production?

Land, Labor, Capital, Entrepreneurship

What is Gross Domestic Product?

A comprehensive measure of a nation's wealth

The Paradox of Value refers to ______.

The low value of essential items; high value of nonessential items

Which is an example of consumer responsibility?

Making an informed purchase and reading/followinng all instructions

Why are consumers powerful?

They help businesses decide what to produce

Why is the Division of Labor important?

It increases efficiency by having certain workers specialize a certain task

What is Opportunity Cost?

The value of the next best alternative

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Econ Chapter 1 Quiz

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Questions 16

Answers

1
Which of the following shows all possible cominations of output?
Cost-Benefit Analysis
Supply and Demand Curve
The US Government
Production Possibilities Curve
2
What are the Factors of Production?
People, Resources, Management, Factories
Land, Labor, Capital, Entrepreneurship
Efficiency, Money, Welfare, Democracy
Time, Money, Effort, Organization
3
The needs and wants of people are ______.
Limited and Similar
Varied and Unlimited
Exaggerated and Overdramatic
Unimportant
4
Which is a Durable Good?
Gasoline
Cars
Food
Clothes
5
Which would result in a change of the production possibilities frontier in a country?
A massive natural disaster
The discovery of a new natural resource
Influx of many immigrants in a country
All of these
6
What is Gross Domestic Product?
How much a business can produce in a year
The amount of money a single household makes in a year
A product in the market that is disgusting
A comprehensive measure of a nation's wealth
7
The Paradox of Value refers to ______.
The low value of essential items; high value of nonessential items
Changes in a country's GDP
The inconsistent value of the same good across the market
The high value of essential items; low value of nonessential items
8
Which is an example of consumer responsibility?
Making an informed purchase and reading/followinng all instructions
Purchasing goods on the Black Market for a cheaper price
Consumers have no responsibilities when buying products
Robbing a store to acquire goods
9
Why are consumers powerful?
They own the factors of production
They vote for who makes goods
They help navigate opportunity cost
They help businesses decide what to produce
10
Why is the Division of Labor important?
It divides the rich from the poor
It prevents specialization
It increases efficiency by making every work good at every task
It increases efficiency by having certain workers specialize a certain task
11
What determines the value of a good or service?
Depends on which store a good or service is sold at
Supply and Demand
Scarcity and Utility
Opportunity Cost
12
What is Opportunity Cost?
The costs a business faces
How much workers are paid by their boss
The cost of not producing more goods or services
The value of the next best alternative
13
When managing resources, you need to evaluate all costs and benefits of each option. This is called _____.
Opportunity Cost
Producer Responsibility
Trade-Offs
Government Intervention
14
Which is a Nondurable Good?
A Couch
Television
Water
A House
15
Society must answer three basic questions about the production of goods:
What, How, and For Whom
Where, Why, and How
What, When, and For Whom
Who, What, and When
16
Economics is best defined as how society deals with _______.
The Factors of Production
Scarcity
Labor
Money Management

Econ Chapter 1 Quiz Flashcards | StudBud