the amount of money a business receives in excess of expense

An opportunity cost would be..

Losing sleep while choosing to study longer

What is an entrepreneur?

A person who decides how to combine resources

What does the "invisible hand" represent in the marketplace?

The nature of a self-regulating economy

An economy is considered capitalist if...

Land, Labor, & Capital are controlled privately

Define human capital.

knowledge and skills a worker needs

What is an economic system?

The method that a society uses to distribute goods and serv.

What is the problem with economics?

We have unlimited wants and limited resources

the study of how people seek to satisfy their needs and want

The term land refers to..

all natural resources used to make goods and services

What is the difference between a shortage and scarcity?

A shortage is when a consumer wants more than is produced

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Economics Chapter 1 & 2

30 termsStudBud Administration386 plays

A review for the intro to economics.

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Questions 30

Answers

1
Define profit.
the amount of income people make
the amount of money a business receives in excess of expense
the amount of money spent by a company
the amount of goods and services sold
2
In a free market economy, what is a question that producers ask?
How much should be produced?
Who consumes what is produced?
Where to produce it?
When to produce it?
3
An opportunity cost would be..
Getting an A on your test because you studied longer
Getting both items that you want
Buying extra merchandise
Losing sleep while choosing to study longer
4
What is an entrepreneur?
A person who produces goods and services
A person who gives extra money to people who are poor
A person who creates extra goods for profit
A person who decides how to combine resources
5
What does the "invisible hand" represent in the marketplace?
The hand the government has on economics
The nature of a self-regulating economy
A hand that is invisible
The extra power Wall Street has
6
An economy is considered capitalist if...
Land, Labor, & Capital are controlled privately
Governments control all factors
Only 1% of Land, Labor, & Capital are private
Private companies own nothing
7
What is a characteristic of a traditional economy?
Government controls all aspects
Urban areas
Farming communities
Lets the "invisible hand" guide commerce
8
What is necessary to exchange in a market?
Personal Finance
Principles
Money
Goods & Services
9
How does scarcity affect the factors of production?
Trade offs create more options
Resources are limited
Budgeting helps provide structure
Resources are limitless
10
In this economy the government controls the goods and services being distributed.
Mixed
Market
Free Enterprise
Command
11
A centrally planned economy is the same as...
Command
Mixed
All of the above
Market
12
Define human capital.
human made objects used to create other goods and services
knowledge and skills a worker needs
technology
the iphone
13
Give another name for a firm.
Household
Business
Trade
Economy
14
"The Customer is King" refers to what?
Market & Mixed Economies
Traditional Economies
Mixed Economies
Command Economies
15
If you live in New York, would your standard of living be higher or lower than in Tennessee?
It would stay the same
Lower
None of the above
Higher
16
Give an example of an incentive.
Working harder to get a job promotion
Studying to receive an A
All of the above
Working out longer to meet your fitness goal
17
Select an example of an entrepreneur creating an innovation?
Automobiles
All of the above
Facebook
The microchip for computers
18
In economics, guns or butter refers to..
different types of economies
scarcity
supply and demand
law of diminishing returns
19
Do traditional economies have a low or high standard of living?
High
Low
20
What type of economic system is the U.S.A?
Market
Traditional
Mixed
Command
21
The degree of involvement varies from nation to nation in a mixed economy.
True
False
22
What is categorized as physical capital?
Not having enough options
A computer
the idea to create a new software system
Skills to use technology
23
What is an economic system?
a set of laws and regulations
The amount of debt a country goes into
Societal Values
The method that a society uses to distribute goods and serv.
24
What is the problem with economics?
We have unlimited resources and limited wants
We have unlimited wants and limited resources
Supply and Demand
We have a desire to get rich
25
What is economics?
the study of money
the study of how people seek to satisfy their needs and want
the study of how people sell goods and services
the study of finance
26
What is essential in a mixed and market economy?
Money
Government
No Government
Competition
27
The term land refers to..
the effort people devote to tasks for which they are paid
an open space or field
manufactured resources used to make goods and services
all natural resources used to make goods and services
28
What are the three factors of production?
Land, Labor, & Capital
Land, Labor, & Technology
Land, Capital, & Money
Labor, Capital, & Services
29
How much government involvement is in a mixed economy?
No government involvement
The government controls everything
None of the above
Some government involvement
30
What is the difference between a shortage and scarcity?
A shortage is when a consumer wants more than is produced
A shortage is when people buy uncontrollably
A shortage is when resources are limited
A shortage is when people stop buying so they stop producing

Economics Chapter 1 & 2 Flashcards | StudBud