What is the opportunity cost of going to college rather than starting work after high school?

the lost wages and work experience from the job

What causes a shortage?

a temporary increase in demand for a particular good

The economic model, in the form of a graph, that shows how an economy might produce two goods

production possibilities frontier/curve

To an economist, the word capital includes

tools, machines, and buildings to produce a good or service

physical objects produced for sale

What are the three fundamental economic questions?

what to produce, how and for whom?

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Economics Review #1

20 termsStudBud Administration80 plays

Economics Basics, Factors of Production, Economic Systems & Goals.

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Questions 20

Answers

1
any point on the production possibility curve represents
opportunity cost
inefficiency
efficiency
impossible
2
a person who assembles and organizes the resources necessary to produce goods and services
land resources
capital
entrepreneur
laborer
3
Social Security, unemployment insurance, WIC, Food Stamps are examples of
taxes
subsidies
government spending
welfare
4
Local Farmers selling their tomatoes to morning star best represents
labor
capital
entrepreneurship
land resources
5
Honor Societies, parking tickets, high gas prices, and prison times are all examples of
future consequences counts
markets coordinate trade
incentives matters
scarcity forces tradeoffs
6
What is the opportunity cost of going to college rather than starting work after high school?
the amount of college tuition, fees, and living expenses
the lost wages and work experience from the job
the greater ability to choose a satisfying career path
the increased salary you will make after earning a degree
7
What causes a shortage?
the discovery of new sources of supplies for goods
having too few resources to satisfy all wants and needs
a temporary increase in demand for a particular good
an increase in the production of goods
8
the area inside the production possibilities curve represents
efficiency
inefficiency
impossible
opportunity costs
9
Businesses' role in the resource market is to
demand
demand and supply
taxes
supply
10
Lower taxes, government bailouts, and farm assistance are examples of
public goods
taxes
subsidies
government spending
11
High car insurance & possible suspension of license are examples of
scarcity forces tradeoffs
markets coordinate trade
future consequences count
incentives matter
12
You pay a hairdresser $40 to get a haircut. This demonstrates the
trade makes people better off
markets coordinates trade
incentives matters
scarcity forces tradeoffs
13
Households' role in the product market is to
supply and demand
demand
supply
tax
14
The economic model, in the form of a graph, that shows how an economy might produce two goods
opportunity cost
tradeoff
law of diminishing utility
production possibilities frontier/curve
15
Our Wants are...
scarce
in short supply
unlimited
equal to our resouces
16
To an economist, the word capital includes
the time and effort people devote to producing goods.
the money used to invest in stocks, bonds, real estate, etc.
tools, machines, and buildings to produce a good or service
the natural resources used to produced goods and services
17
What are the factors of production?
the measure of the efficiency with which goods are produced
scarcity, shortage, and productivity.
goods and services
land labor and capital
18
The government's role in the factor marker is to
tax
demand
supply
spend
19
Goods are
physical objects produced for sale
our desires for things that meet our needs
activities done for us by others
things produced for the betterment of all people
20
What are the three fundamental economic questions?
how much credit to extend, at what cost, and for whom?
how many jobs to create, when, and for whom?
what to produce, how and for whom?
what currency to use, at what value, and how to exchange it.

Economics Review #1 Flashcards | StudBud