To conduct a cost/benefit analysis, a sensible person would MOST LIKELY

compare marginal costs to marginal benefits

An opportunity cost is

the best alternative that is given up

Why is there scarcity even in the United States?

Resources are limited but wants are unlimited.

The phrase "guns or butter" expresses the idea that

government assess trade-off with military and domestic needs

A point on a production possibilities frontier represents

a point where an economy is using resources productively

Which of the following is true about scarcity?

Scarcity affects all societies.

studbud

Fundamentals of Economics

14 termsStudBud Administration38 plays

An #economics quiz reviewing the basics of Economics

Flashcards14 cardsFPractice quizPHost liveL

Questions 14

Answers

1
To conduct a cost/benefit analysis, a sensible person would MOST LIKELY
compare previous costs to previous benefits
compare marginal costs to marginal benefits
compare unknown costs to known benefits
compare known costs to unknown benefits
2
An opportunity cost is
the worst alternative that is given up
the best alternative that is given up
a choice that is made when no alternatives are good
the cost of making decisions when producing goods
3
What are the three factors of production?
Human capital, physical capital, intellectual capital
Workers, management, entrepreneuers
Wants, needs, services
Land, labor, capital
4
A sales clerk represents which factor of production?
Land
Entrepreneur
Labor
Capital
5
Why is there scarcity even in the United States?
Wants are limited but needs are unlimited.
Resources are limited but wants are unlimited.
Some people are poor while others are wealthy.
Entrepreneurs are scarce and companies need leaders.
6
Why are entrepreneurs important to the economy?
They desire profits.
They are willing to take risks.
They have talent and imagination.
The promote economic growth.
7
What is the opportunity cost of choosing to save money by not going to a concert?
having fun at the concert
spending time at home
having time to study
having extra money
8
The phrase "guns or butter" expresses the idea that
government assess trade-off with military and domestic needs
individuals, businesses, and governments all face trade-offs
government decisions involve opportunity cost
factor resources are limited.
9
Because of scarcity, every decision involves a
trade-off.
marginal benefit.
marginal cost.
cost/benefit analysis.
10
Which of the following causes a production possibilities frontier to shift to the right?
The economy stagnates.
The economy shrinks.
The economy destabilizes.
The economy grows.
11
A point on a production possibilities frontier represents
a point where an economy is using resources productively
a point of economic growth
a point where a nation is producing only one good or service
a point at which the economy is being underutilized
12
Which of the following is a benefit that a business is likely to attain from buying equipment?
Fewer natural resources required
Better entrepreneurial knowledge
Lower costs
Increased productivity
13
Which of the following is true about scarcity?
Scarce goods lead to lower prices.
Scarcity affects all societies.
Scarcity exists only in poor countries.
Scarcity of resources can be handled with economic policies
14
What are economists referring to when they say "choosing is refusing"?
Marginal cost
Opportunity cost
"Guns or butter"
Thinking at the margin

Fundamentals of Economics Flashcards | StudBud