Fundamentals of Economics

What is one way a government can foster human capital?

In which economic system do firms, consumers & the government answer key economic questions?

The business cycle is best described as a

This type of economy is the most susceptible to natural disasters.

What would happen to the curved line if production of guns and butter became more efficient?

A role of government in the United States economy is to

What is a true statement about scarcity?

A person who starts up and takes on the risk of a business

A benefit of technology is that it

Land, labor, & capital; three groups of resources that are used to make all goods & services

The principle that people may decide what, when, and how they want to buy and sell

In this model, what type of services is government most likely to provide?

Which describes human capital?

We must have land, labor, & capital to produce. What do we call these necessities collectively?

Which economic system most values the goal of freedom?

Basic requirements for human survival

The line on a production possibilities graph that shows the maximum possible output

Which type of market does this circular model represent?

The study of scarcity and choice

What is an international public good?

Households can best be described as

Which type of market does this circular model represent?

Decision Grids are valuable tools because they help us

What does this graph demonstrate?

Wages, salaries, benefits, and goods and services are part of the

The limited nature of society's resources

Which is not one of the three key economic questions?

Adam Smith’s concept of the invisible hand is best described as

The cost added by producing one additional unit of a product or service.

Which economic system most values security and safety nets?

Each of these is a principle of free enterprise except

Point A represents

If an industry is posing a potential threat to the environment, a government will most likely

Desires that can be satisfied by consuming a good or service

What is necessary to ensure increased standards of living?

Most economic systems exist on a continuum between

The curved line running through points B, D, and C is the

In which type of economic system is consumer sovereignty most valued?

The most desirable alternative given up as the result of a decision

One way a business can incentivize increased output is by