Scarcity is the principle that

there r limited goods/services to meet unlimited wants/needs

actions or activities someone performs for money

An example of a "guns or butter" decision is

deciding whether to increase education or military spending

the added benefit realized from adding one more unit

Laissez-faire economics involves

Little to no government control over the economy

Underutilization can best be described as

the use of fewer resources than an economy is capable of

Human capital is considered to be

the knowledge & skills you get from education and experience

the most desirable alternative that you had to give up.

Something that is not necessary for survival

Capital is considered to be

human-made resources that is used to produce goods/services

The law of increasing costs states that

Switching production 2 2nd good raises costs for that good

A production possibilities curve will show

alternative ways to use an economy's productive resources

Land is considered to be

all natural resources used to make goods and services

giving up one benefit to gain another

Efficiency can be described as the

way to best use resources to maximize output in an economy

A cost-benefit analysis is a

way to determine what you sacrifice/gain by taking an action

Something that is required to survive

study of how people seek to satisfy wants/needs by choosing

Factors of production are

resources that are used to make goods and services

Thinking at the margin is best represented by:

deciding whether or not to use one more unit of something

Physical capital is considered to be

the human-made objects used to create goods/services

We have to make choices about how we use resources because there are

Not enough resources 4 everyone to have all the need or want

ppl who decide how to create goods and services w/ resources

A shortage occurs when

consumers want more of a product than can be supplied at a $

Labor is considered to be

the effort people devote to tasks for which they are paid

actions or activities performed for money

Marginal cost is considered to be

the cost of adding one more resource unit

A production possibilities frontier will show

the maximum possible output an economy can produce

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Economics Chapter 1 Review

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A #Economics review on #Econ Basics.

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Questions 30

Answers

1
Scarcity is the principle that
there r limited goods/services to meet unlimited wants/needs
there are unlimited goods and services to meet wants/needs
there are unlimited goods but limited services to meet wants
limited goods but unlimited services to satisfy wants
2
Goods are
anything that can be purchased with cash
actions or activities someone performs for money
physical objects that someone produces
something you can afford but don't have yet
3
An example of a "guns or butter" decision is
whether to buy groceries or apply for food stamps
whether to buy a video game or a gun
whether to braid your hair or wear it in a ponytail
deciding whether to increase education or military spending
4
Marginal benefit is
the process of deciding to add another unit of a resource
the A's you get from buying paper with margins
the added cost of adding one more unit
the added benefit realized from adding one more unit
5
Laissez-faire economics involves
Little to no government control over the economy
Complete government control of the economy
People fulfilling roles they were born into
An economic approach involving a mixture of three systems
6
The most scarce resource we have available is
Power
Money
Time
Land
7
Underutilization can best be described as
point where an economy's resources are at peak efficiency
a line that shows the maximum output possibility for economy
the use of fewer resources than an economy is capable of
a line that shows the minimum output possibility for economy
8
Human capital is considered to be
People in the workforce
the knowledge & skills you get from education and experience
the human-made objects used to create other goods & services
when cheerleaders form letters with their arms and legs
9
Opportunity cost is
a choice you are ambivalent about
the least desirable alternative you had to give up
the most desirable alternative that you had to give up.
a choice you are uninformed about
10
A want is
Any consumer good
Something that is not necessary for survival
Something that is necessary to survive
Something you want, but can't afford
11
Capital is considered to be
a place where the President lives
a type of lettering
human-made resources that is used to produce goods/services
money
12
The law of increasing costs states that
Switching production 2 2nd good raises costs for 1st good
Switching production 2 2nd good raises costs for that good
Prices will always go up, never down
Costs will always go up, never down
13
A production possibilities curve will show
how much of an item a supplier will make at a given price
how much of an item will be demanded by people @ given price
alternative ways to use an economy's productive resources
the best price one should charge for an item.
14
Land is considered to be
something people tell you to get off of all the time
something that people buy to make money
all natural resources used to make goods and services
the place an entrepreneur decides to put his or her business
15
A trade-off is
when you trade baseball cards
trading job shifts to another employee for a better one
giving up one benefit to gain another
something I'll never have to do
16
Efficiency can be described as the
way one shows the alternative ways of using resources
use of fewer resources than an economy is capable of
best combination of quantity supplied & quantity demanded
way to best use resources to maximize output in an economy
17
A cost-benefit analysis is a
way to determine what you sacrifice/gain by taking an action
way to understand how businesses make decisions about prices
term in a book that means nothing
way to understand how consumers make decisions about buying
18
A need is
Any consumer good
Something that is required to survive
Something you can afford but you don't have
Something you want, but can't afford
19
Economics is
the idea that we don't have to make choices in life.
study of how people seek to satisfy wants/needs by choosing
the study of how we can have everything we could ever want
a very boring subject
20
Factors of production are
resources that are used to make goods and services
things that cause scarcity to exist
something learned in math class
things that cause shortages to happen
21
Thinking at the margin is best represented by:
deciding whether or not to use one more unit of something
Ignoring a request by a teacher not to write in the margins
deciding to buy paper without margins
Conforming to a request not to write in the margins
22
Examples of factors of production are
land, science, and technology
capital, mathematics, and science
land, labor, and effort
land, labor, and capital
23
Physical capital is considered to be
how big your muscles are
the knowledge and skills a worker gains
the human-made objects used to create goods/services
an actual building where governing takes place
24
We have to make choices about how we use resources because there are
Parents who tell us we have to
Teachers who tell us we have to
Not enough resources 4 everyone to have all the need or want
Bosses who tell us we have to
25
Entrepreneurs are
people who only care about getting rich
people who decide whether or not to give me a job
people who are there to give out jobs
ppl who decide how to create goods and services w/ resources
26
A shortage occurs when
there are limited goods/services to satisfy unlimited wants
consumers want more of a product than can be supplied at a $
when someone opens a new business
someone decides how to combine resources to create new goods
27
Labor is considered to be
something you get paid for
the effort people devote to tasks for which they are paid
union workers
white collar work
28
Services are
something you can afford but don't have yet
ideas, thoughts, and prayers
actions or activities performed for money
Anything that can be bought
29
Marginal cost is considered to be
the cost and benefit of adding one more resource unit
The cost of buying paper with margins
the benefit of adding one more unit of some resource
the cost of adding one more resource unit
30
A production possibilities frontier will show
the maximum possible output an economy can produce
the minimum possible output an economy can produce
how the West was won
how much of something an economy is currently producing

Economics Chapter 1 Review Flashcards | StudBud