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AICE Econ Unit 1 Flashcards | StudBud
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AICE Econ Unit 1
AICE Econ Unit 1
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1
The principle that people may decide what, when, and how they want to buy and sell.
Economics
Specialization
Scarcity
Voluntary Exchange
2
How does specialization relate to voluntary exchange?
Specialization helps to decide what to produce vs trade.
Trading weakens us by making us dependent on other nations.
When we become specialized, exchange ceases to be voluntary.
Enough division of labor makes trade unnecessary.
3
An economic system in which resources are primarily owned and controlled by the private sector.
Mixed Market
Traditional
Command
Free Market
4
Which entity(ies) are responsible for income?
Government
Businesses
Business & Government
Households
5
Which describes human capital?
buildings and tools
skills and knowledge
land and labor
slowing or stopping production
6
Desires that can be satisfied by consuming a good or service.
Needs
Needs and Wants
Greed
Wants
7
In which system do firms, consumers, and government answer the key econonomic questions?
Traditional
Free Market
Command
Mixed Market
8
The line on a production possibilities graph that shows the maximum output / efficiency.
Production Possibilities Frontier
Factors of Production
Opportunity Costs
Production Possibilities Curve
9
Households can best be described as
Producers
Consumers
Government
Businesses
10
What is a true statement about scarcity?
Scarcity is a result of producing too little.
All things are scarce except for our wants and needs.
Overproduction will inevitably lead to scarcity.
Scarcity is finite
11
Which economic system most values security and safety nets?
Mixed Market
Command
Traditional
Free Market
12
Which economic system most values the goal of freedom?
Mixed Market
Free Market
Command
Traditional
13
This type of economy is the most susceptible to natural disasters.
Command
Free Market
Traditional
Mixed
14
Adam Smith’s concept of the
invisible hand
is best described as
Interaction between buyers and sellers.
The self-regulating nature of the market.
The development of the division of labor.
The opposite of self-interest.
15
Which is
not
one of the three key economic questions?
How should goods and service be produced?
What goods and services should be produced?
Who consumes the goods and services?
Why do we produce goods and services?
16
Basic requirements for human survival.
Scarcity
Wants
Labor
Needs
17
An economic system in which the government controls a country's economy.
Traditional
Free Market
Mixed Market
Command
18
The methods societies use to produce and distribute resources.
Free Market Economy
Economic Systems
Traditional Economy
Command Economy
19
Most economic systems exist on a continuum between
Command and Free Market
Mixed Market and Free Market
Command and Traditional
Mixed and Traditional
20
The development of skills in a specific kind of work; division of labor.
Specialization
Needs
Scarcity
Wants
21
Decision Grids are valuable tools because they help us
Understand maximum production capabilities.
Solve problems when only two options exist.
Weigh benefits against opportunity costs.
Realize that trade-offs are unnecessary.
22
The limited nature of society's resources.
Wants vs. Needs
Scarcity
Voluntary Exchange
Specialization
23
Which type of market does this circular model represent?
Command
Free Market
Traditional
Mixed
24
What would happen to the curved line if new technology made production more efficient?
It would explode.
It would shift right.
It would straighten out.
It would shift left.
25
The cost added by producing one additional unit of a product or service.
Incentive
Opportunity Cost
Marginal Cost
Perverse Incentive
26
In which type of economic system is consumer sovereignty most valued?
Free Market
Traditional
Command
Mixed Market
27
Point A represents
Impossibility
Inefficiency
Efficiency
Capacity
28
The curved line running through points B, D, and C is the
Production Possibility Frontier
Margin of Production
Trade-Off Curve
Law of Diminishing Returns
29
A person who starts up and takes on the risk of a business.
Entertainer
Job Producer
Job Creator
Entrepreneur
30
Land, labor, and capital
Opportunity Costs
Natural Resources
Factors of Production
PPF or PPC
31
What is necessary to ensure increased standards of living?
Innovation
Stagnation
Security
Equity
32
Which of these is a positive statement?
A 5% increase in price has led to a 5% decrease in sales.
A 10% decrease in supply of oil should not lead to an increase in price.
A 5% increase in price should lead to a 5% decrease in sales.
A 10% decrease in supply of oil ought to increase it's price.
33
Raw materials from nature that are used to produce goods.
Raw Goods
Non-Renewable Resources
Renewable Resources
Natural Resources
34
Which type of market does this circular model represent?
Free Market
Command
Mixed Market
Traditional
35
Market-based economic system with limited government involvement
Free Market
Traditional
Mixed Market
Command
36
What type of services is a government most likely to provide?
Safety Nets & Education
Consumer Goods
Safety Nets
Education
37
The study of scarcity and choice.
Economics
Psychology
Sociology
Pedogogy
38
An economy consisting of mostly subsistence agriculture.
Command
Traditional
Free Market
Mixed Market
39
The most desirable alternative given up as the result of a decision.
Opportunity Cost
Trade
Marginal Cost
Specialization
40
Wages, salaries, benefits, and goods and services are part of the
Product Market
Product & Consumer Market
Worker Market
Consumer Market
