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Basics of Economics Flashcards | StudBud

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Basics of Economics

12 terms·StudBud Administration·407 plays

#economics #economicfundamentals

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Questions 12

Answers

1
Which of the following are factors of production?
land and labor
technology and productivity
scarcity and shortages
economics and business decisions
2
Why does every decision involve trade-offs?
you can't have everything you want
b/c you're not the Clemson football team at the white house
some people have more money
just because
3
What is marginal thinking?
What are the cost/benefits of doing one more thing?
Is it butter or margarine?
When I only use part of my brain.
What is the opportunity cost?
4
What is the difference between scarcity and a shortage?
scarcity is temporary; shortage is forever
a shortage is temporary; scarcity is forever
there is no difference
5
What does an economist mean by the term land?
just some stupid trees
farmland
open space
natural resources
6
Why would a company produce under the line? (underutilization)
a loss of at least one factor of production
innovation
cause of ice spice
a gain of at least one factor of production
7
Economics is about solving the problem of
economics
money
opportunity cost
scarcity
8
How can a business expand their production possibilities curve?
build new factory
fire workers
burn factory; collect insurance
drink more milk
9
What does an increase in the labor force do to a production possibilities curve?
nothing
decreases production
increases production
10
What must happen when you make a decision?
nothing
costs must outweigh benefits
benefits must outweigh costs
11
What is opportunity cost?
your choice
all trade-offs
$4.99 or 2 for $7
most desirable trade-off
12
What factor of production is education?
labor
human capital
land
physical capital