Which choice is the correct example of opportunity cost?

Mr. King decides to buy a mule instead of new clothes.

The study of economics is concerned with:

making choices to use scarce resources efficiently

Which is the best definition of scarcity?

unlimited wants outpace limited resources

Why would the richest person in the world experience scarcity?

Because productive resources are limited.

How do we define opportunity cost?

the value of the next best alternative that is given up

What does the Production Possibilities Frontier tell us?

It shows the possible outcomes when two goods are produced.

Of the three fundamental questions of economics, which is one of these options?

how to produce goods and services

What is the best characteristic of a mixed economy?

Government sets a minimum wage for private business.

In a market economy ...

prices reflect scarcity and wants

Mr. Goodwrench, an auto mechanic, requires capital resources. These are:

a garage, tools and a telephone

An efficient economy is one in that ...

Uses its resources with very little waste.

Human capital is defined as:

the knowledge and skills that a labor resource possesses

What does Point H represent?

An impossible level of production.

Consumer sovereignty is defined as ...

consumers choose which products will be produced

studbud

Duplicate of Economics Fundamentals

28 termsStudBud Administration

This is a Quiz to test our knowledge of the foundational ideas of #economics.

Flashcards28 cardsFPractice quizPHost liveL

Questions 28

Answers

1
In a command economy, the key driver of the economy is...
consumers
the government
entrepreneurs
businesses
2
For a factor of production to be scarce, it must be...
limited and desirable
unevenly allocated
unlimited and cheap
rare and expensive
3
Which choice is the correct example of opportunity cost?
You buy a new jacket with birthday money.
Mr. King decides to buy a mule instead of new clothes.
You make a toy from leftover popsicle sticks.
Teachers take on the extra duty of driving buses.
4
An economic system formed around habits, customs and religion is ...
primitive system
traditional system
archaic system
natural system
5
Two ways of allocating scarce resources are:
supply and demand, and leverage
authority and consensus
command and control
supply and demand, and contest
6
The study of economics is concerned with:
customs and traditions
efficiently allocating society's products
making sure businesses succeed
making choices to use scarce resources efficiently
7
Which is the best definition of scarcity?
unlimited wants outpace limited resources
a shortage of goods
not having enough money to buy stuff
the allocation of goods and services
8
Why would the richest person in the world experience scarcity?
Because workers wages keep going up.
Because prices are too high.
Rich people do not experience scarcity.
Because productive resources are limited.
9
How do we define opportunity cost?
spending money on what you want
all other alternatives you give up to do what you want
marginal cost for non-fraudulent exchanges
the value of the next best alternative that is given up
10
What does the Production Possibilities Frontier tell us?
It maps trade between two nations.
It predicts when unemployment is rising.
It shows the possible outcomes when two goods are produced.
It tells us when we are in recession.
11
Of the three fundamental questions of economics, which is one of these options?
how to produce goods and services
how goods are allocated
who will receive goods and services
how much goods and services will cost
12
The resources used to make all goods and services are called the...
production tradeoffs
factors of production
natural resources
the production frontier
13
Which economic system has a very low unemployment rate?
planned
market
command
mixed
14
The outwardly bowed shape of the production possibilities curve tells us:
how opportunity costs increase
that growth is unsustainable
that production is inefficient
that marginal costs are expensive
15
What is the best characteristic of a mixed economy?
Government sets a minimum wage for private business.
All factories produce for the government's needs.
Farmers engage in a barter economy.
Scarcity is experienced by all.
16
The term "land" in factors of production means ...
dirt
unfinished goods
natural resources
real estate
17
In a market economy ...
prices reflect scarcity and wants
governments intervene
governments plan production
governments interfere
18
What is the opportunity cost if we move from Point C to Point B?
both pizzas and robots
7,000 robots
100,000 pizzas
300,000 pizzas
19
Mr. Goodwrench, an auto mechanic, requires capital resources. These are:
customers, tools and land
a garage, lenders and customers
money, a garage and employees
a garage, tools and a telephone
20
Profit motive is defined as:
a business's desire to spend money
how a business creates income
the desire to work
an incentive to make money
21
An efficient economy is one in that ...
Makes a high profits for each product.
Uses its resources with very little waste.
Gets more work done in less time.
Has low levels of unemployment.
22
When one decision is made, the next-best alternative is:
additive resource
comparative advantage
comparative disadvantage
opportunity cost
23
Human capital is defined as:
hiring new people
the knowledge and skills that a labor resource possesses
how much money someone earns
the number of people in the workforce
24
What does Point H represent?
An impossible level of production.
Nothing
Our long-term hopes and dreams.
The maximum amount we can produce right now.
25
Which choice is a capital factor of production?
air conditioning
Ms. Payne
a computer
steel
26
The fundamental economic problem faced by all societies is ...
scarcity
poverty
unemployment
inequality
27
Which choice from factors of production is an example of LABOR?
sweat produced when working
mental activity when producing
goods and services that are produced
learning new skills
28
Consumer sovereignty is defined as ...
consumers determine how resources are allocated
producers create demand for products
producers advertise goods and services
consumers choose which products will be produced

Duplicate of Economics Fundamentals Flashcards | StudBud