stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Economics Chapter 2 Review Flashcards | StudBud
Explore
/
Economics Chapter 2 Review
Economics Chapter 2 Review
20 terms
·
StudBud Administration
·
35 plays
Imported from external platform
Flashcards
20 cards
F
Practice quiz
P
Host live
L
Questions
20
Answers
1
What is it when governmental borrowing reduces the money available for business to borrow?
Factor cost
Crowding out
Consumption
Financial capital
2
Which of the following would an economist
NOT
consider to be an example of land?
Machinery
Sheep
Wheat
Petroleum
3
From whom do businesses ultimately receive the factors of production?
Stockholders
Government
Banks
Households
4
What is the
most
important Factor of Production?
Profit
Capital
Entrepreneurship
Interest
5
The circular flow model is a tool of what?
Lending
Macroeconomics
Borrowing
Microeconomics
6
What is the
main advantage
of the line graph over the schedule (tabular model)?
It better illustrates results
It contains more data
It is more scientific
It is less complicated
7
Which is
NOT
one of the four major components of the circular flow model?
Households
Business Firms
Churches
Government
8
What does PPC stand for in economics?
Prospective production concept
Production possibilities curve
Production payments capital
Practical production consumed
9
Which is
NOT
one of the 4 factors of production?
Government
Capital
Entrepreneurship
Labor
10
Ludwig von Mises is well-known for exploring the economic practice of what?
Governmental intervention
Free markets
Entrepreneurship
Financial markets
11
What are the two basic elements of the circular flow model?
Households and business firms
Stock markets and banks
Banks and households
Business firms and stock markets
12
Which is
NOT
one of the 4 factor costs?
Interest
Rent
Wages
Production
13
Which of the following is a transfer payment?
Income tax withholdings
Governmental unemployment payments
Department of Defense purchases
The wages of postal workers
14
What is the "heart" of the economy that circulates money?
The public sector
Businesses
The financial markets
The government
15
On a PPC graph, any point on the graphed line represents what?
Production efficiency
Production variables
Minimum costs
Wasted resources
16
Which of the following is
NOT
an example of capital?
A house
A hammer
A business loan
A tractor
17
What is the entire sum that households spend on goods and services?
Factor costs
Financial capital
Factors of production
Consumption expenditures
18
What are the two primary uses for economic models?
Transfer and withholding
Investing and dissaving
Saving and investing
Prediction and instruction
19
What is an example of dissaving?
Opening a checking account
Making a payment on a loan
Taking out a mortgage
Making a deposit in a savings account
20
Which of the following does
NOT
qualify as a possible factor cost?
Sales taxes
Medical benefits
Author royalties
Interest payments
