An entrepreneur is someone who...

Combines land, labor, and capital to produce a good/service

An efficient economy is one that...

uses its resources to make the most goods

The purpose of a production possibilities graph is to show...

Show alternate ways to use resources

An example of a shortage is when...

Food because the truck workers are on strike

Why do production possibilities frontiers curve on a graph?

Increasing costs lead to increasing less output

What is the opportunity cost of a decision?

The most desirable alternative given up

Scarcity occurs when there is...

Limited supply to meet unlimited demand

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Economics - Unit 1 Exam Review

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Questions 17

Answers

1
An entrepreneur is someone who...
works a 9-5 job
is globally aware
sits at home in their mom's basement playing CoD
Combines land, labor, and capital to produce a good/service
2
One of two ways to increase a countries production possibilities is due to an increase in...
Technology
Power
Laziness
Workers
3
An economy that uses its resource to make the most amount of goods and services is called...
Inefficient
Intelligent
Efficient
Underutilized
4
Why are all goods and services scarce?
Some are needs and wants
Some have more than others
All resources are scarce
Goods cost more than others
5
An efficient economy is one that...
Has high unemployment
makes the least costly good
uses its resources to make the best goods
uses its resources to make the most goods
6
The resources used to make all goods and services
Opportunity Cost
Factors of production
Production possibilities
Capital
7
The purpose of a production possibilities graph is to show...
Show alternate ways to use resources
Ensure 100% employment
How a country can win a war
How to increase production
8
For every extra unit of a product, it has a greater opportunity cost.
Law of Decreasing Cost
Law of Increasing Costs
Law of Income
Law of Demand
9
An example of a shortage is when...
Water for irrigation because its used for other crops
Food is scarce because there is only so many farms
Labor because we only have so many people
Food because the truck workers are on strike
10
Why do production possibilities frontiers curve on a graph?
The tech level of an economy
Inefficient
Maximum output of goods and services
Increasing costs lead to increasing less output
11
Resources made by humans and used to create other goods and services
Services
Labor
Land
Capital
12
Making the decision to work an additional hour because you like the benefit is called...
Opportunity cost
Deindustrialization
Thinking at the margin
Trade-offs
13
A factory is an example of ...
Physical capital
Technology
Labor
Human Capital
14
All other options in a decision are called
Whatever decisions
Opportunity cost
The coolest thing ever
Trade-offs
15
What is the opportunity cost of a decision?
Different ways that somewhat may have chosen
The best possible answer to a decision
The most desirable alternative given up
A series of alternative decisions
16
When a country decides to produce military goods instead of consumer goods, this is called...
basic economic decisions
guns or butter
Decision at the margin
Global trade-off
17
Scarcity occurs when there is...
High unemployment
Limited supply to meet unlimited demand
Global trade-offs
Underutilization

Economics - Unit 1 Exam Review Flashcards | StudBud