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Economics Topics 1-2 Flashcards | StudBud
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Economics Topics 1-2
Economics Topics 1-2
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Basics of Economics from factors of production through communism
Flashcards
21 cards
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Questions
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Answers
1
Who has the absolute advantage in pies and cakes?
William for both
David for pies and William for cakes
David for both
David for cakes and William for pies
2
What does "guns or butter" mean?
The government decides between military and consumer goods
The government decides between a literal gun and butter
The consumer decides between protection and food.
The consumer decides between guns and butter
3
Adding an employee with a bachelor's degree improves a company's:
it does not help a company
labor
human capital
entrepeneurship
4
Which of the following describes scarcity best?
limited wants and unlimited resources
unlimited wants and unlimited resources
A problem that can be solved by making more
unlimited wants and limited resources
5
What is an example of land?
a worker
a tractor
a factory
a cow
6
when a company is not producing as much as it could what is it called?
inefficient
efficient
opportunity cost
surplus
7
Pollution is an example of which economic term?
Marginal product of labor
Marginal benefit
Negative externality
Positive externality
8
What does thinking at the margin mean?
Thinking about the next best alternative
Thinking about two options based on one additional unit
Thinking between multiple choices
Thinking about butter alternatives
9
What would be an efficient economy?
one with minimum use of resources
one with maximum use of resources
one without resources
one with a balanced use of resources
10
Why are communism and socialism defined under a command economy?
Government controls the Factors of Production
Government is hands off towards the Factors of Production
Consumers are hands off to the factors of Production
Consumers command the Factors of Production
11
Which of the following is a proper definition for trade offs?
The best decision
All alternative decisions
What you gain by making your decision
The best alternative decision
12
A Buy One Get One free on shoes is an example of a:
good way to get rid of bad shoes.
negative incentive
positive incentive
shortage
13
Which of the following is a proper definition for opportunity cost?
The best alternative decision
The best decision
All alternative decisions
What you gain by making your decision
14
Which of the following is not one of the three questions every society must answer?
Where to produce?
What to produce?
For whom to produce?
How to produce?
15
What does the word margin mean in economics?
the range of units
the difference in units
one additional unit
a gap or space separating two points
16
The production possibilities curve demonstrates all of the following except
Efficiency
Opportunity cost
What to produce
Scarcity
17
What is the purpose of the production possibilities curve?
To compare the inefficient possibilities along the curve
To compare the efficient possibilities of two goods
To see what is impossible to produce
To compare the efficient possibilities of all goods
18
Why is the production possibilities curve bowed out most of the time?
decreasing opportunity cost
constant opportunity cost
increasing opportunity cost
diminishing marginal returns
19
When someone makes decisions to benefit themselves Adam Smith would say they are
corrupt
greedy
selfish
self-interested
20
Competition + self-interest=
Greed
The invisible hand
communism
War
21
what is a mixed economy?
A free market economy with government regulations
a socialist country
an economy based around chemical mixtures
A command economy allowing some business to exist.
