Economics- Unit 1 Review

Product intended for final use by consumers rather than businesses

Any combination/point below the production possibilities frontier illustrates

Free market system where the government has some involvement in the economy

Any point/combination on the production possibilities frontier illustrates

Which of the following economic system has private property?

Sum of people's skills, abilities, health, and motivation.

A productive resource not created by human effort (natural resources)

Economic System- profit incentive, lots of choices in goods and services, private property

Which of the following is NOT a basic economic question?

A good or services capacity to provide satisfaction or usefullness is known as

Tools, equipment, and factories used in the production of goods and services

Assignment of tasks so that each worker performs fewer functions more frequently

Broad social goal of U.S. economy- right to choose your own occupation and use of your money

Which of the following examples best demonstrates opportunity cost?

In capitalism, the motivation for starting and operating a business is to:

oil and water would be an example of which type of factors of production/productive resources

Examples of which productive resources- Hammer, copy machine, saw, and factories

Voluntary exchange allows consumers to choose where they want to spend their money

What do economic systems do?

The basic problem in Economics and why people study it is due to

A combination of goods and services outside/ (above) the PPF illustrates:

A market economy has an advantage over a traditional economy in that a market economy

Employment in service occupations refers to:

Economic System- no private property, government answers the three basic economic questions

Capitalism is most closely associated with what economic system?

The act of buyers and sellers freely and willingly engaging in market transactions:

Risk taking individuals in search of profits

Which of the following is an investment in human capital?

The situation of limited resources and unlimited needs and wants creates

The desires and needs of the consumer determines what producers make is known as:

Process of thinking about a potential benefit or cost to a choice is defined as:

Specialization is a good idea because it increases efficiency and thus brings down cost.

Which group of people ultimately determine the products in a free enterprise economy?

Broad Social Goal- fairness, illegal to discriminate based on age, race, sex, or disability

Which of the following examples would shift the PPF upwards- (illustrating economic growth)

Movement along the production possibilities frontier illustrates which economic concept?

Market where productive resources are bought and sold

Economic System- no role confusion, basic needs are met, predictable, low standard of living

Henry Ford's assembly line would be an example of specialization/division of labor