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Econ Unit #1: Foundations of Econ Flashcards | StudBud
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Econ Unit #1: Foundations of Econ
Econ Unit #1: Foundations of Econ
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Flashcards
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Questions
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Answers
1
Look at the pic of the circular flow model. Where would an individual buy a good/service from?
Capitol
Business
Factor Market
Product Market
2
Which factor of production would a robot be that paints new cars?
Capital
Labor
Entrepreneurship
Land
3
A traditional economy is one in which...
decisions about how to use resources are made by a religious text
resources are used according to custom or tradition.
Made by private individuals like you and me
all decisions are made by Vladimir Putin
4
Capitalism and a free enterprise economy is most like which economic system?
Traditional
Command
Market
Religious
5
Which factor of production consists of natural resources found in nature?
This is not a factor of production
Entrepreneurship
Labor
Land
6
Characteristic of a
Capitalistic Free Market Econ
means that there is a struggle among producers to make good products?
Competition
Private Property Rights
The Profit Motive
Economic Freedom
7
Who benefits when an entrepreneur succeeds?
The entrepreneur, consumers, and workers only
The entrepreneur, consumers, workers, and the government
The entrepreneur and the consumers only
The entrepreneur only
8
Look at the pic of the circular flow model - Where would an individual give the 4 Factor of Production to?
Business
Product Market
Bernard's mixtape
Factor Market
9
In a free market capitalistic economy, who determines which products are produced?
The government
Business owners
The workers
Consumers
10
What does it mean to say that something is scarce?
It is plentiful
It satisfies a desire
It is intangible
It is limited in amount
11
In economics, what is a “good”?
Something that has a low marginal utility.
Something that does not involve any opportunity cost
Something held in high esteem
Something tangible that satisfies a want or desire
12
Which factor of production would chewing gum be?
Land
Labor
This is not a factor of production
Capital
13
We have to make decisions about what wants to satisfy because what two things are in conflict?
Marginal benefits and Marginal rewards
Unlimited wants and limited resources
Trade-offs and opportunity costs
Wants and desires
14
According to the concept of diminishing marginal utility, what is true?
The more you consume of something, the less satisfying it is
The more you get, the more you want.
At a certain point, scarcity causes us to make less and less
Productive resources are without limit
15
In economics, what is a “service?”
Something you can touch or perceive with the senses
Something done to capital to keep it operating
A certain trade or form of labor
Something intangible that satisfies a want or desire
16
Which characteristic of a
CFME
means that people are free to engage in market transactions?
The Profit Motive
Competition
Voluntary Exchange
Private Property Rights
17
Which of the following is
NOT
one of the 3 basic economic questions that all societies must answer?
Why to produce
What to produce
For whom to produce
How to produce
18
Refer to the diagram of the production Possibilities Curve - The combo of guns & butter on Pt C
is attainable, but inefficient - not using all of resources
is unattainable, given currently available resources & tech
doesn't matter because its inconsistent w/ consumers wants
indicates high opportunity costs.
19
Which factor of production consists of tools, equip, & machinery used to produce other goods?
Capitol
Land
Labor
Capital
20
According to an economist, every decision we make has...
an opportunity cost
a marginal reward
a dollar value
negative consequences for all Mr. O's students
21
If society is currently making 10 Good B's, how many Good A's are being produced?
2
3
1
unattainable
22
Opportunity Cost is....?
The cost of an item, plus what you gain from your choice.
The next best thing that you are giving up or missing out on
What you gain based on your choice
Just have the government solve all of your problems
23
Almost all economies today are mixed, ours would best be described as which of the following?
Market economy
Traditional economy
Religious economy
Command economy
24
According to the Production POssibility Frontier point A is...?
inefficient
attainable and efficient
efficient
unattainable
25
Which factor of production would a Steve Jobs, Henry Ford, Bill Gates, or Mark Zuckerberg be?
Entrepreneurship
Capital
Land
Labor
26
characteristic of a
capitalistic free market economy
- people control their own possessions?
Voluntary Exchange
Private Property Rights
The Profit Motive
Competition
27
In the circular flow chart the individual is buying a CPU. Who produces the CPU?
Individual
Business
Product Market
Factor Market
28
What is the basic fundamental problem facing all societies?
Unemployment
Labor shortages
Scarcity
Diminishing marginal utility
29
In a free market capitalistic economy, the government does all of the following EXCEPT...
determines who can afford the products that are produced.
provides some goods and services
protects against false advertising and dangerous products
regulates (makes rules) to ensure competition
30
Which political philosopher was a proponent of capitalism & wrote about the econ idea of value?
Adam Smith
Karl Marx
Bernie Sanders
Kanye West
31
Think about what the letters in the term “
TINSTAAFL
” stand for. What is the point of this term?
People always want more than they have.
Needs are necessary for life but wants are not.
Everything has a cost.
The more you consume of something, the less satisfying it is
32
In order to have a high value, a good has to have which qualities?
Utility only
Utility and Capacity
Capacity only
Utility and Scarcity
33
Which factor of production is the workers and their skills?
Entrepreneurship
Labor
Capital
Land
34
Where would
Westborn Market
(grocery store) fall on our Circular Flow Chart?
Individual
Product Market
Business
Factor Market
35
A market economy is one in which...
resources are used according to custom or tradition.
decisions about resources are made by a central government.
private individuals like you & me decide how to use resources.
decisions about resources are made by consulting texts.
36
An economic system is...
graph that shows the different combos of goods and services
a way of studying economics
organized way that a society provides 4 the wants and needs
A way of electing leaders to make economic decisions
37
In Economics, a
trade-off
involves...
Goods and services
Profits and losses
Alternative Choices (what you gain)
Wants and needs
38
Characteristic of a
CFME
means that people are able to choose their jobs and their employer?
Private Property Rights
Voluntary Exchange
The Profit Motive
Economic Freedom
39
A command economy is one in which...
decisions are made by a central government.
Decisions on how to use products and services come from Vladimir Putin
private individuals like you & me decide how to use resources.
resources are used according to custom or tradition.
40
Which characteristic of a
CFME
encourages people to work to improve their economic well-being?
Voluntary Exchange
Economic Freedom
Competition
The Profit Motive
41
All of the following are true of corporations EXCEPT...
They have to follow a lot more government rules
It is more difficult to start up than other business forms.
Easy for the business to raise money by selling stock.
The owner takes all of the risk (unlimited liability)
42
What is the Opportunity Cost of going from producing 6 Good B's to producing 10 Good B's?
No opportunity cost
4 Good B's
1 Good A
4 Good A's
43
In economics, what is a market?
An arrangement that allows workers to “sell” their labor.
A physical place (store) where consumers can buy products
A place where goods are sold but not services
A place that allows buyers and sellers to exchange products.
44
If you ate two pieces of pizza, “marginal utility” would best describe...
How you felt before you ate the first piece
How you felt from eating the second piece
How you felt some time after eating both pieces.
How you felt from eating the first piece
45
Refer to the diagram of the production Possibilities Curve - point B shows?
Combos of Guns & Butter that society can produce efficiently
that this society prefers Butter to Guns
that society is better off producing guns instead of butter
Guns & butter R identical 2 each other
46
If society is producing 3 Good A's how many Good B's are simultaneously being produced?
0
12
6
3
47
If you are buying goods, where would Amazon.com fit into our Circular Flow Chart?
Land
Factor Market
Capital
Product Market
48
Describes a business in which all partners are equally responsible 4 managing the business?
A corporation
A limited partnership
a sole proprietorship
A general partnership
49
All of the following are true of a sole proprietorship EXCEPT...
It is easy 4 the business to raise money by selling stock.
The owner does not have to share profits
The owner takes all of the risk (unlimited liability)
It is easier to start up than other business forms
50
In Economics, what is
value
?
The cost of the next best alternative
A subjective positive feeling we get when we purchase a good
What you give up in order to do what you did.
A worth that can be expressed in dollars and cents
