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Chapter 1: The Economic Way of Thinking Flashcards | StudBud
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Chapter 1: The Economic Way of Thinking
Chapter 1: The Economic Way of Thinking
30 terms
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StudBud Administration
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#basic economic concepts
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
Goods that go together are said to be.......
complimentary goods
public goods
neutral goods
comparative goods
2
Economics is best defined as the study of......
utility
satisfying unlimited wants with limited resources
equilibrium
supply and demand
3
The fundamental economic problem is.......
underutilization
costs
scarcity
wants
4
To be a successful entrepreneur requires a willingness to......
limit spending
borrow money
play it safe
take risks
5
What does a point inside the PPC indicate?
more resources are required
less resources are required
not all resources are fully employed
all resources are fully employed
6
Which of the following would NOT push the PPC outward?
Increased labor resources
New technology for more efficient production
more trade-offs
Additional natural resources
7
Which is NOT a feature of a
corporation
?
Has limited liability
Has unlimited life
Has the highest form of government regulation
The largest number of business organizations in the US
8
Which of the following is NOT a basic economic question answered by different economic systems?
When to produce?
For whom to produce?
What to produce?
How to produce?
9
From the choices given, and by it's true definition, the best example of capital is would be...
a tractor
job-training
a chef
a raise in wages
10
The PPC curve is bowed in shape because of....
the law of underutilization
the law of scarcity
the law of efficiency
the law of law of increasing opportunity costs
11
Which of the following is NOT a feature of a
monopoly
?
An example would be Fireball Lanes
Difficult entry into the market
Considered a 'price taker"
Sells a product/service with no close substitute
12
A combination of companies that make the same product or service.
conglomerate merger
vertical merger
horizontal merger
linear merger
13
He is considered the "Father" of modern market system economies.
Karl Marx
Tom Marx
Adam Smith
John Smith
14
Adam Smith's concept that an "invisible hand" will guide the economy.
ceteris paribus
laissez faire
carpe diem
quid pro quo
15
Which of the following is NOT true about
partnerships
?
Has high government regulation
has limited life
a Lancaster example would be a Lancaster Dental Associates
has unlimited liability
16
Which is NOT a feature of a
traditional economy
?
Resists change
Unpredictable
Less personal choice
Little disagreement over economic roles
17
Which of the following best describes a want?
unlimited and never changes
limited and never changes
limited and ever changing
unlimited and ever changing
18
What does the production possibilities curve (PPC) illustrate?
utility and satisfaction
opportunity cost
economies of scale
efficiencies
19
Public parks, libraries and swimming pools are considered _______________ wants.
collective
reoccurring
comparative
complementary
20
Which of the following is NOT an advantage of a
market economy
?
It awards only productive services
Consumer choice is high
can adapt to change quickly
private property rights
21
Into what four categories do economists divide the factors of production?
resources, clients, money and enterprise
land, labor, capital and money
land, labor, capital and entrepreneurship
land, labor, money and enterprise
22
Which is NOT considered a need?
food
television
clothing
shelter
23
The satisfaction received from using one more unit of a good or service is called....
opportunity cost
marginal benefit
trade-off
marginal cost
24
An example of a trade-off is.....
giving up going to a movie because of bad reviews
going to a movie because of good reviews
going to a movie that your favorite actor is in
giving up going to a movie to study
25
What does the saying "There is no such thing as a free lunch" mean?
most things cost something
some things costs more than others
everything costs something
most things have little cost
26
Which is NOT true about the government in the US?
It serves as a consumer
It serves as the planner
It serves as a producer
It serves as the protector
27
Which of the following is feature of
perfect competition
?
An example wold be car producers
Difficult entry and exit into the market
Product/service is identical with many close substitutes
Has total influence over price
28
Opportunity cost is the ______________ of a trade off.
efficiency
utility
scarcity
value
29
Which of the following buys goods for personal use?
producer
consumer
client
entrepreneur
30
Which is NOT a disadvantage of a
command economy
?
It seeks to provide for everyone
Little incentive for worker productivity
Economic decisions could be incorrect
No incentive to use resources wisely
