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Econ - Ch. 1 Review Flashcards | StudBud
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Econ - Ch. 1 Review
Econ - Ch. 1 Review
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Fundamentals of Economics
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
Which of the following is NOT a factor of production?
wealth
labor
capital
entrepreneurship
2
You pay $5 to see a movie instead of buying a $5 meal. What's the opportun. cost of the movie?
the $5 paid to see the movie
the satisfaction received by going to the movie
the time spent watching the movie
the satisfaction missed by not eating the meal
3
In the debate over guns vs. butter, which of the following is an example of butter?
military planes
commercial planes
schools
private factories
4
Manufactured products used to produce other goods and services
consumer goods
gross domestic products
capital goods
nondurable goods
5
Division of labor is a characteristic of
assembly line production
home craft businesses
entrepreneurship
classroom education
6
Entrepreneurs are considered the driving force in an economy because they
are the greatest # of people in an economy
start new businesses
own a great deal of land
provide most of the labor
7
What basic econ problem do both higher income nations and lower income nations have in common
scarcity of resources
too much gov't
lack of capital goods
too many unskilled workers
8
Alternative choices
standard of living
paradox of value
trade-off
Opportunity cost
9
Which best describes the relationship between trade-offs and opportunity costs?
opportunity costs are incurred when trade-offs are made
trade-offs occur when there are no opportunity costs
opportunity costs are the opposite of trade-offs
trade-offs lower the opportunity cost of a decision
10
Way of organizing work so that each individual worker completes separate tasks.
standard of living
division of labor
specialization
opportunity cost
11
What helps when analyzing economic behavior?
focusing on benefits rather than costs
using simple models
taking large steps toward the final goal
writing a thesis
12
Worth that can be expressed in dollars and cents.
value
Opportunity cost
utility
service
13
The amount of output produced with a given amount of resources in a specific period of time.
productivity
opportunity cost
capital
economic growth
14
Something we would like to have but is not necessary for survival.
Want
Utility
Need
Good
15
Basic requirement for survival, such as food, clothing, and shelter.
Want
Need
Service
Good
16
A popular model used to illustrate the concept of opportunity cost is
entrepreneurship
the paradox of value
the production possibilities curve
the factors of production
17
Society not having enough resources to produce all the things it would like to have.
opportunity cost
scarcity
trade-off
wealth
18
Tools, equipment, machinery, and factories used in the production of goods and services.
needs
capital
service
labor
19
The study of economics helps people to
become better decision makers
make wise choices for political candidates
understand the free enterprise system
all of the above
20
Tangible economic product that is useful, relatively scarce, and transferable to others
capital
need
good
service
21
When the US gov't purchases a submarine from a company the gov't has made a transaction in the
factor market
foreign exchange market
product market
public market
22
Which of the following is MOST important for economic growth?
efficient use of resources
a large labor force
ample tax revenues
availability of resources
23
Alternative choices available when a decision is being made.
opportunity cost
division of labor
trade-off
scarcity
24
Which is an example of an investment in human capital?
person goes to college
country builds new schools
company builds a new factory
state puts in a new highway
25
Resources - land, labor, capital, and entrepreneurs required to produce goods and services
paradox of value
factors of production
trade-off
standard of living
26
Quality of life based on the ownership of the necessities and luxuries that make life easier.
standard of living
opportunity cost
economic growth
specialization
27
Money-income payments include all of the following EXCEPT
profits
capital
interest
wages
28
An economy at its production possibilities frontier is operating
with slow economic growth
without division of labor
as a free enterprise economy
at full potential
29
What is the opportunity cost of buying a $35 soccer ball?
time spent deciding to spend your money
something else you could have bought
time spent making the purchase and the tax paid on the bill
$35 in cash
30
Which of the following is not one of the 3 basic economic questions?
When to produce?
How to produce?
What to produce?
For Whom to produce?
