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Economics Chapter 1 Review Flashcards | StudBud
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Economics Chapter 1 Review
Economics Chapter 1 Review
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#Whittington #Economics Chapter 1 Review
Flashcards
38 cards
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Questions
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Answers
1
You have enough money to buy a drink or popcorn, and you buy the drink what is the opp-cost?
the price of the popcorn
the price of the soda
the satisfaction of eating the popcorn
his thirst
2
Which of the following best matches the concept of land?
printing press used in a publishing company
employees at a factory
petroleum used in gasoline production
the owner of a company
3
In the production of a new home, which does
not
fit the description of capital?
money used to buy the carpentry tools
hammer used to build the home
carpenters that worked to build the home
saw to cut the wood
4
At what point is production not attainable or feasible at this time?
B
A
D
C
5
Which of the following would cause production to be represented by point C?
disease strikes cattle
Workers go on strike
increased cost of metal used in gun production
decrease cost of capital goods to make guns
6
In order to make a rational decision a person must consider:
net exports
the impact of government programs
potential opportunity costs and trade-offs
factors of production
7
The production possibilities frontier/curve can be used to illustrate all of the following
but
:
opportunity cost
specialization and the division of labor
trade-offs
choices
8
People that work with their effort, abilities, and skills:
Land
Capital
Entrepreneurship
Labor
9
Those who purchase goods or services:
Consumer
Producer
10
Paul wants to buy a sports car, but he is limited in the number of dealers, he is facing:
an embargo
scarcity
severe inflation
depression in the car market
11
Which of the following is
not
a basic economic question?
for whom to produce
when to produce
how to produce
what to produce
12
How many guns are being produced at point A?
75
50
60
100
13
Resources like water, oil, and iron
Physical Capital
Financial Capital
Human Resources
Natural Resources
14
For something to have value or be of use to you, it:
has no cost
cost a lot of money
never goes out of style
has utility
15
How many units of butter are being made at point B?
25
75
20
100
16
What does letter C represent?
future goal
efficiency
impossible
underutilization
17
Which of the following is an example of a service?
you blow drying your hair before school
cutting hair by a barber
you washing your own hair
you combing your hair in class
18
How would you make a decision between buying a car and going to college?
immediately buy the new car and figure out the rest later
evaluate the alternatives before making a decision
put money in a savings account, no new car, no college
pay for 1/2 the college tuition then use the rest on the car
19
Finished products that people (you and I) buy:
Opportunity Cost
Natural Resources
Consumer Goods
Human Resources
20
If i make cookies, what item would be my capital?
the retailer
the oven
the worker
the dough
21
Value of the next best alternative, what you gave up
Human Resources
Opportunity Cost
Entreprenuership
Natural Resources
22
Manufactured goods used to make other goods:
Capital Resources
Human Resources
Consumer Goods
Natural Resources
23
The study of how governments, businesses, and individuals make decisions about scares resources
geology
psychology
economics
philosophy
24
Which of the following is an example of human capital?
a company builds a new factory
a person goes to college
a country build new schools
a state puts in a new highway
25
What is the unit of study in microeconomics?
the economy as a whole
individual businesses and households
inflation and recession
imports and exports
26
Examines the entire economy, unemployment rate, all manufactured goods:
none of the above
total input
Microeconomics
Macroeconomics
27
Those who make things that people purchase
Consumer
Producer
28
People that labor or work a job
Consumer Goods
Human Resources
Capital Resources
Natural Resources
29
What is the opportunity cost of shifting from point A to point B?
80 guns
50 butter
100 guns
75 butter
30
If David decides to open a business and he hires Frank to run the store, what is David?
Entrepreneur
Capital
Labor
None of these
31
Scarcity is the basic and most fundamental problem in economics
False
True
32
What is the central problem in the study of economics?
opportunity cost
scarcity
monetary policy
inflation
33
Physical objects that can be purchased:
Goods
Producers
Utilities
Services
34
No matter what decision a person makes in life, there is always a cost.
True
False
35
If more guns are produced, what happens to the production butter?
less butter will be produced
their are zero opportunity cost involved
more butter will also be produced
the same amount of butter will be produced
36
In order to make a rational decision, one must:
be aware of differences in compound and simple interest
understand capital investment
be able to compare marginal cost and benefits
be an entrepreneur
37
If a countries PPC shifts outward, which of the following is true?
decrease in production
increases its technology and growth has occured
underemployed its resources
experiencing inflation
38
All points on the line or curve represent what?
impossible
underutilization
efficiency
future goals
