Economics- Unit 1 Review

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

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

Any combination/point below the production possibilities frontier illustrates

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

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

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

Which of the following is an investment in human capital?

Any point/combination on the production possibilities frontier illustrates

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

Capitalism is most closely associated with what economic system?

Employment in service occupations refers to:

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

What do economic systems do?

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

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

The situation of limited resources and unlimited needs and wants creates

Movement along the production possibilities frontier illustrates which economic concept?

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

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

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

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

Which of the following is NOT a basic economic question?

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

Product intended for final use by consumers rather than businesses

If I fail this class I don't graduate

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

Risk taking individuals in search of profits

Market where productive resources are bought and sold

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

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

Which of the following examples best demonstrates opportunity cost?

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

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

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

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

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

Which of the following economic system has private property?

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