ECON Chpt 1 quiz questions

Something that encourages or motivates a person to take action

Sally buys a car for $15000. 5 yrs later she sells it for $8000. Economists would say when car was sold it was worth ??

Who determines what goods are produced?

In a Market Economy, who decides how goods/services are produced?

The decision to convert a piece of farmland into city housing represents a

When more of one thing necessarily means less of something else. Tax revenues to military means less $ for education

Opportunity Cost is best described as some thing that a

In a system of voluntary exchange, people

when you are considering the additional costs and additional benefits of choices you are thinking "on the _____"

The bottling machine, loading dock, and computers are exmples of

The monetry (cash) payment or earnings for labor is ________

Country A decides to improve the quality of its human capital. To do this Country A would likely increase investments in

The monetry (cash) payment or earnings for land is ________

Scarcity is most often used to refer to

The monetry (cash) payment or earnings for capital is ________

Identify the three economic questions about production that every country and economic system must answer:

In a command economy, who decides what, how and for whom?

People make voluntary exchanges of goods and services in a free market mainly because they

In economics the concept of making a "trade-off" is most accurately described as

The monetry (cash) payment or earnings for entrepreneurship is ________

What are the 4 types of resources or factors of production? (same thing)

An economist would probably agree that to make effective financial decisions, consumers should

The economic way of thinking analyzes what aspects:

A result that happens that was unexpected or not planned

In a free market economy, what answers the FOR WHOM question?