Unit 1: Thinking Like an Economist

Market where resources are bought and sold

A good or services capacity to provide satisfaction or usefullness is known as

Risk taking individuals in search of profits

A productive resource not created by human effort (natural resources)

Broad social goal of U.S. economy- right to choose your own occupation and use of your money

Capitalism is most closely associated with what economic system?

Any combination/point below the production possibilities frontier illustrates

Employment in service occupations refers to:

oil and water would be an example of which type of factors of production/productive resources

Voluntary exchange allows consumers to choose where they want to spend their money

Economic System- profit incentive, lots of choices in goods and services, private property

Specialization is a good idea because it increases efficiency and thus brings down cost.

Which group of people ultimately determine the products in a free enterprise economy?

In capitalism, the motivation for starting and operating a business is to:

Which of the following is NOT a basic economic question?

Economic System- no private property, government answers the three basic economic questions

Which of the following is an investment in human capital?

Economic System- no role confusion, basic needs are met, predictable, low standard of living, bartering

The situation of limited resources and unlimited needs and wants creates

Sum of people's skills, abilities, health, and motivation.

Process of weighing choices is defined as:

Examples of which productive resources- Hammer, copy machine, saw, and factories

Assignment of tasks so that each worker performs fewer functions more frequently

Tools, equipment, and factories used in the production of goods and services

Free market system where the government has some involvement in the economy

The basic problem in Economics and why people study it is due to

Movement along the production possibilities frontier illustrates which economic concept?

What do economic systems do?

A market economy has an advantage over a traditional economy in that a market economy

Any point/combination on the production possibilities frontier illustrates

The act of buyers and sellers freely and willingly engaging in market transactions:

Product intended for final use by the public rather than businesses

A combination of goods and services outside/ (above) the PPF illustrates:

Which of the following examples best demonstrates opportunity cost?

Which of the following examples would shift the PPF upwards- (illustrating economic growth)

The desires and needs of the consumer determines what producers make is known as:

Broad Social Goal- fairness, illegal to discriminate based on age, race, sex, or disability