Economics U1: Fundamentals of Economic Analysis

When a nation is efficient with its resources, it

Absolute advantage is about _______ and comparative advantage is about _____________.

Making the best use of scarce resources has to do with the goal of economic

Which of the following best describes mixed market capitalism?

Adam Smith's "invisible hand" theory suggests that

Sam makes 100 and Cory makes 200 baskets in one hour. Who has the absolute advantage?

The production possibilities is a model that demonstrates

In a mixed economy, the government manages this type of public works project.

The opportunity cost of a decision is

Specialization and trade makes nations

Which of the following economic systems allows privatization but taxes very heavily?

The buildings, structures, machines, and tools used in production are called

The rational behavior model suggests that people mostly make decisions based on

Trade offs and opportunity costs

In a socialist economy, people are promised free goods and services, but

Which one goes best with capitalism

In this economy, government intervention is limited

The saying, "jack of all trades, master of none," could be used to describe

The people who decide to buy things are called

The Circular Flow Model demonstrates that in a market economy,

Utility is defined as the

A command economy is characterized by

The study of the choices people make to satisfy their needs and wants is called

The production possibilities frontier (PPF) demonstrates

The traditional economy is based primarily on

Historically, socialism and communism have resulted in

A ____________________ economy relies on ancestral and historical traditions

Economics can BEST be defined as

A renewable resource would be ____ while a non-renewable resource would be ____

On a PPF, production combinations below the frontier are