In economics, what is the invisible hand?

The market operating without intervention.

The law of increasing opportunity costs states

that it costs more to make more.

What is a division of labor?

When specialization occurs in production.

Points along the Production Possibility Frontier show what?

The most efficient use of resources.

Comparative advantage is

When specialization occurs b/c of lower opportunity costs.

What is the basic economic problem?

Unlimited wants, Limited resources

when the person with lowest opportunity costs focuses on it.

Why are NFL kickers so bad at tackling?

They are specialized in kicking.

Why is it better for my student aide to arrange the desks than for me to?

Because they have the lower opportunity costs of doing so.

What are the three economic questions a society must answer ?

What to produce? Who to produce for? How to produce it?

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Economic Systems, Comparative Advantage and Production Possibility Frontiers

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Questions 25

Answers

1
In economics, what is the invisible hand?
The market operating without intervention.
Adam Smith's hand.
The market operating with the government intervention.
The hand of God that blesses the market.
2
The law of increasing opportunity costs states
that it costs more to make less.
that it costs less to make more.
it costs less to make less.
that it costs more to make more.
3
The idea of comparative advantage is based on
property rights
game theory
tax incidence
opportunity cost
4
Pure centrally planned economies tend to have which of the following issues?
Consumers get low priority.
Too much choice.
There is a wealth gap.
Everyone gets paid the same.
5
Comparative Advantage is used to...
maximize efficiency
to reduce efficiency
for high prices
to gain absolute advantage
6
What is a division of labor?
Dividing a laborer into pieces.
Savard teaching dance.
When specialization occurs in production.
Dividing productive resources up.
7
Points along the Production Possibility Frontier show what?
Some numbers about guns and butter.
When the economy as a whole is most best.
The two products trade-offs.
The most efficient use of resources.
8
Comparative advantage is
When the person does more.
When opportunity costs are too high.
When specialization occurs b/c of lower opportunity costs.
When compared to others they have advantage.
9
What is the basic economic problem?
Unlimited supply, Limited demand
Limited wants, Unlimited resources
Unlimited wants, Limited resources
Limited supply, unlimited demand
10
Economic systems have to answer all but which of the following questions about production?
How?
What?
For whom?
When?
11
What is one thing that Production Possibility Frontiers show?
Scarcity
Want vs need
A combination of all products
Guns and butter
12
All are economic systems except ........
Mixed Economy
Command Economy
Free Market Economy
Banking System
13
In Monsters Inc. what is the most efficient way to produce energy?
Screams
Anger
Smiles
Laughter
14
Specialization is
when you get a gold star for trying.
what's cheap on the menu.
when you are the best at something.
when the person with lowest opportunity costs focuses on it.
15
What kind of economy does the United States have?
Traditional economy
Pure market economy
Pure centrally planned economy
Mixed economy
16
Why are NFL kickers so bad at tackling?
They are specialized in tackling.
They are specialized in running.
They are specialized in whining.
They are specialized in kicking.
17
What is one thing that Production Possibility Frontiers show?
Guns and butter
Scarcity
Want vs need
A combination of all products
18
In which economic system does the private sector account for all production?
Pure centrally planned economies
Pure market economies
Traditional economies
Mixed economies
19
Why is it better for my student aide to arrange the desks than for me to?
Because they have absolute advantage of doing so.
Because they have the lower opportunity costs of doing so.
Because they hate the desk arrangement.
Because they know where to sit.
20
What is the economic problem?
Scary
Recession
Scarcity
Production
21
Who are the planners in pure centrally planned economies?
The people
The government
Firms
The rest of the world
22
Communism and Capitalism are opposed economic systems
False
True
23
Being able to do something using the fewest resources is called
Comparative advantage
Production advantage
Absolute advantage
Advantage
24
What are the three economic questions a society must answer ?
Who to trade with? How much to trade? What to trade?
What is the market like? What is the currency? What to trade
What to produce? Who to produce for? How to produce it?
What is the population ? What is the weather? What for?
25
Russia is a Pure Centrally Planned economy.
True
False

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