Economists build economic models

to help analyze economic behavior

Entrepreneurship refers to the ability to

start new businesses and introduce new products and services

Pure Socialism is characterized by

centralized economic planning and state owning of property

Factors of production include which of the following?

land, labor, capital and entrepreneurship

According to Adam Smith

government should not interfere in the marketplace

A production possibilities curve helps determine

the maximum combination of goods and services to be produced

After creating an economic model, how can you determine if the model represents reality?

by testing the model with facts from the real world

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Economics Unit 1 Review

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Review over Unit 1 for Economics Course

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Questions 25

Answers

1
what is the basic problem of economics
government policies
scarcity
consumer behavior
pricing
2
Economists build economic models
to find out how high teenage unemployment is
to help consumers determine their opportunity costs.
to help analyze economic behavior
to describe how the factors of production should be combined
3
It is easier to start your own business in a
free enterprise system
command economy
traditional economy
controlled economy
4
Entrepreneurship refers to the ability to
adapt technology efficiently
manage other people
borrow capital successfully and expand an existing business
start new businesses and introduce new products and services
5
unlimited wants/needs with limited resources
labor
economic model
scarcity
economics
6
Pure Socialism is characterized by
individual ownership of the factors of production
decision making based on traditions and customs.
centralized economic planning and state owning of property
a complete absence of government
7
What represents the opportunity cost if I move from point A to point C?
5 Units of Guns
3 Units of Guns
10 Units of Guns
4 Units of Guns
8
Factors of production include which of the following?
all of the products produced in an economy
goods and services
land, labor, capital and entrepreneurship
technology products and entrepreneurship
9
tangible items that people buy
labor
scarcity
economics
goods
10
According to Adam Smith
government should not interfere in the marketplace
mixed economy combines all of the best of command and market
the role of government is to allocate resources
lef to themselves, individuals would mishandle the economy
11
A company's office buildings are an example of
entrepreneurship
Land
Labor
Capital
12
In the system described answers to the basic economic questions are determined by?
customs and beliefs
individual consumers
market prices
government leaders
13
Three Basic questions (what should be produced, etc.) are answered by what types of economies?
all economies
market economies
mixed economies
command economies
14
A major characteristic of a pure market economy is
unrestricted competition
regulated prices
strong government planning
an oversupply of labor
15
A production possibilities curve helps determine
costs of production
factors of production
the maximum combination of goods and services to be produced
all of the opportunity costs and tradeoffs for a business
16
the study of how individuals and societies use limited resources to meet wants and needs
scarcity
labor
goods
economics
17
a visual representation that helps explain and predict economic behavior
goods
economic model
scarcity
labor
18
The economic goals of the American Free-enterprise system include
choice, central planning, and security
profit, traditions, and government control
freedom, equity, and growth.
socialism that evolves into pure communism
19
After creating an economic model, how can you determine if the model represents reality?
by asking other economists for their opinions on the matter
by testing the model with facts from the real world
by formulating theories about how the economy works
by recording the factors of production for a business
20
Ecnomics is primarily concerned with which of the following?
future costs of goods
use of resources
values and objectives of a society
methods of production
21
According to the author, a good economic theory is one that
helps solve real problems
is as elegant as a theory in mathematics or physics
includes mathematics
is aesthetically sound
22
For this curve the country can produce 21 Units of Guns and how many Units of Butter?
8 Units
5 Units
6 Units
10 Units
23
In a capitalist system, most property is
regulated by the government
owned by the government
owned by banks
private property
24
The value of the next best alternative that has to be given up for the action that is chose is
the productivity
the opportunity cost
the factor of production
the trade-off
25
The work people do
economics
scarcity
labor
goods

Economics Unit 1 Review Flashcards | StudBud