An opportunity would be.......

buying popcorn instead of candy at the movies

Choose an example of a trade off

go shopping instead of going to the game

Choose a characteristic of a traditional economy.

People use a bartering system in rural/farming areas.

Select a characteristic of a command economy.

Goods and services are dispersed effectively.

What does the invisible hand represent in the market place?

The nature of a self-regulating economy.

An opportunity cost is defined as..

The most desirable alternative is given up

What is the difference between physical and human capital?

Human capital is the idea and physical capital is the good

What is the difference between shortage and scarcity?

A shortage is when a consumer wants more than is produced.

select the problem with economics

there are unlimited wants and limited resources

How does the term "guns or butter" relate to the economy?

trade-offs & spending money for military or domestic needs.

What is an entrepreneur?

A person who decides how to combine resources.

The term "land" refers to

all natural resources used to make goods and services

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Econ Ch. 1&2 Quiz

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Questions 23

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1
The standard of living represents.....
level of economic prosperity
standard used to measure economic decisions
importance of living below one's means
power of the federal government
2
An opportunity would be.......
purchasing both items you want
getting an "A" on your test because you studied
riding a bike to school because you ran out of gas
buying popcorn instead of candy at the movies
3
Choose an example of a trade off
eat an apple as part of daily routine
lose sleep to study for a test
go shopping instead of going to the game
workout longer than normal
4
Choose a characteristic of a traditional economy.
People use a bartering system in rural/farming areas.
People live in urban areas and sell items online.
Lets the "invisible hand" guide commerce.
The government controls all aspects.
5
What are the factors of production?
Land, Labor, and resources.
Labor, capital, and profit.
Land, labor, and capital.
Land, labor, and trade.
6
The problem of limits relates to..
capital
scarcity
factors of production
shortage
7
Select a characteristic of a command economy.
The "invisible hand" guides the economy.
Goods and services are dispersed effectively.
None of the above.
Citizens have multiple competitors
8
What does the invisible hand represent in the market place?
The nature of a self-regulating economy.
The additional power that Wall Street has on the economy.
The importance of laissez faire economics.
The power the government has on the economy.
9
An opportunity cost is defined as..
giving up one benefit to gain another, greater benefit.
none
Something people desire but not necessary for survival.
The most desirable alternative is given up
10
What is the difference between physical and human capital?
human capital is knowledge of calculator & physical is using
Human capital is the idea and physical capital is the good
Human capital is workers
Human capital is technology & physical capital is knowledge
11
Households provide what to firms?
labor and money
land and capital
none
job and money
12
What type of economic system is in the U.S.A.?
mixed
free market
command
traditional
13
Choose and example of a factor payment
consumer purchases
interest on a loan
payment on a credit card
producer goods
14
What is essential in a mixed and market economy?
competition
opportunity cost
safety net
freedom
15
What is the difference between shortage and scarcity?
A shortage is people stop buying, producers stop producing.
A shortage is when a consumer wants more than is produced.
A shortage is when people buy uncontrollably.
A shortage is when resources are limited.
16
A mixed economy has government involved in
Everything
Partial
None
Nothing
17
select the problem with economics
there is a desire to get rich
the law of supply and demand
there are unlimited wants and limited resources
there are unlimited resources and limited wants
18
How does the term "guns or butter" relate to the economy?
You can only have one or the other in an economy.
It represents how much of a good or service is available.
provides multiple options to buy goods from other countries.
trade-offs & spending money for military or domestic needs.
19
What is an entrepreneur?
A person who creates extra goods for profit.
A person who gives extra money to poor people.
A person who decides how to combine resources.
A person who produces goods and services.
20
What are companies and businesses first goal in finance?
To provide incentives to their employees to work harder.
To make a profit.
To set up advertisements for others to buy their product.
To generate growth.
21
Which is an example of using decision-making thinking?
Cost/Benefit Analysis.
All of the Above.
Evaluating Trade-offs & Opportunity Costs.
Thinking at the Margin.
22
"The Customer is King" relates to which economic system?
mixed
free market
2 of the above
command
23
The term "land" refers to
all natural resources used to make goods and services
the effort for which people work to reach an incentive
open field or farm
all man made objects used to make goods and services

Econ Ch. 1&2 Quiz Flashcards | StudBud