Why are goods and services scarce?

Resources used to produce them are limited.

Which is an example of thinking at the margin?

Is the marginal(change in) cost more than marginal benefit

What line on a production possibilities curve shows the amounts of goods produced?

production possibilities frontier

Why are goods and services scarce?

Resources used to produce them are limited

What does a production possibilities curve illustrate?

opportunity costs in a nations economy

Which economy is efficient?

one that makes the most of goods and services possible

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Ch. 1-What is economics

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Ch 1 What is economics #opportunitycost

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Questions 20

Answers

1
Why are goods and services scarce?
People want more than they can have.
Some goods cost more than others
Greedy people want too many goods.
Resources used to produce them are limited.
2
What information is needed to make a decision at the margin?
more than three alternatives
factors of production
cost to produce each unit
opportunity costs
3
A risk taker who starts a new business
entrepreneur
capitalist
production possibility
marginal cost
4
Which is an example of thinking at the margin?
deciding whether to have a dog or cat
thinking about whether or not to go on a beach vacation
Is the marginal(change in) cost more than marginal benefit
drawing plans to build an extra room on an old home
5
What line on a production possibilities curve shows the amounts of goods produced?
utilization of resources
opportunity cost line
production possibilities frontier
maximum possible production line
6
Why are goods and services scarce?
People want more than they can have
Greedy people want too many goods
Resources used to produce them are limited
SOme goods cost more than others
7
Why does every decision involve trade-offs?
Resources are limited.
Decisions are all different
Incomes are not equal
Everyone has to make decisions.
8
If you choose to study instead of sleep, what is sleep called?
trade-off
opportunity at the margin
decision at the margin
opportunity cost
9
Government leaders making a decision whether to spend money on military or on helping farmers
a guns or butter issue
a decision at the margin
law of increasing costs
underutilization of resources
10
What does a production possibilities curve illustrate?
economic growth over time
how public goods are created
opportunity costs in a nations economy
decision making in a centrally planned economy
11
You order a veggie sandwich on wheat bread. Which factor is water used to grow the wheat?
land
labor
physical capital
human capital
12
The idea that goods and services are limited
scarcity
shortage
inefficiency
economics
13
Not using all your available resources
marginal benefit
marginal cost
underutilization
efficiency
14
What happens to a production possibilites curve when more resources become available?
Production in at the possibilities frontier
There is underutilization
There is no effect
The curve shifts to the right
15
What is the best way to increase physical capital
Provide free lunch to employees
Build an employee gym
Hire more workers
Expand your factory
16
Which economy is efficient?
one that makes fewer goods because workers are laid off
one that wastes fuel when making goods
one that uses fewer resources than are available
one that makes the most of goods and services possible
17
What could a company do to increase its human capital?
provide training
build a company cafeteria
lease cars for employees
hire more part-time workers
18
What you give up to get something else
need
opportunity cost
labor
scarcity
19
All natural resources used to make goods
capital
land
labor
human captial
20
If a company lays off workers, then they are said to be underutilizing resources.
False
True

Ch. 1-What is economics Flashcards | StudBud