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BJU Economics Ch 2 Flashcards | StudBud
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BJU Economics Ch 2
BJU Economics Ch 2
31 terms
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Questions
31
Answers
1
Who provides factors of production to businesses?
Households
Businesses
Government
Financial market
2
On a PPC, any point on the line represents inefficient production.
False
True
3
Land, labor, capital, and entrepreneurship are examples of _________.
Factors of processing
Opportunity costs
Factor Costs
Production Factors
4
PPC stands for ...
Production Paramaters Curve
Process Possibilities Curve
Production Possibilities Curve
Production Predictability Curve
5
Discouraging entrepreneurship decreases the flow of new products.
True
False
6
The resources necessary to create goods and services
Factors of production
Factor costs
Real capital
Consumption expenditures
7
Consumption expenditures is the term for gross sum of production from the business firm sector.
False
True
8
If the government spends less than it receives, it is referred to as a surplus.
True
False
9
The line graph provides more data than a schedule (tabular) model.
True
False
10
An example of dissaving could be depositing in a savings account.
False
True
11
Rent, wages, interest, and profit are examples of _____.
Opportunity benefit
Production factors
Factors of processing
Factor costs
12
The PPC line indicates the efficient use of resources, while points above the line indicate inefficient use.
False
True
13
Land includes all resources from land, including animal, plant, and mineral matter.
False
True
14
The circular flow model focuses on Microeconomics.
True
False
15
The financial market is crucial for channeling household savings to the business sector. This helps keep businesses open
True
False
16
Ludwig von Mises is well known for studying the economics of free markets.
False
True
17
Gross Domestic Product (GDP) is the gross sum of what households spend on goods from the business sector.
False
True
18
Business firms and ________ are the two components of a basic circular flow model.
Households
Government
Banks
Financial market
19
The financial market includes all institutions that receive deposits from households and loan to businesses.
True
False
20
The entire sum that households spend on goods and services
Consumption expenditures
Factors of production
Real capital
Factor costs
21
Payments made in exchange for factors of production.
Real capital
Consumption expenditures
Factor costs
Factors of production
22
What is the term for government over borrowing from the financial market, reducing funds available for businesses?
Resuscitation
Crowding out
Entrepreneurship
Competition
23
Profit is the most important factor of production.
False
True
24
Transfer payments are specifically government payments to households, with no expectation of return.
False
True
25
Factor costs include ...
Interest payments
Author royalties
Medical benefits
All of the above
26
Which of the following is one of the four components of the Circular Flow Model?
Households
Government
Business Firms
Financial Market
27
Models all have shortcomings; they are not entirely accurate to the system they are modeling.
True
False
28
The key component for circulating money in an economy is the
Public sector
Government
Private sector
Financial market
29
The tools used to produce goods and services
Factor costs
Consumption expenditures
Factors of production
Real capital
30
Capital includes ...
Business loan
All of the above
Tractor
Hammer
31
Instruction and _______ are the two primary uses of economic
Assessment
Manipulation
Implementation
Prediction
