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Economics Fundamentals
Economics Fundamentals
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This is a Quiz to test our knowledge of the foundational ideas of #economics.
Flashcards
28 cards
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Questions
28
Answers
1
For a factor of production to be scarce, it must be...
unevenly allocated
rare and expensive
limited and desirable
unlimited and cheap
2
Which choice is a
capital
factor of production?
steel
a computer
Ms. Payne
air conditioning
3
When one decision is made, the next-best alternative is:
opportunity cost
comparative disadvantage
additive resource
comparative advantage
4
Consumer sovereignty
is defined as ...
producers create demand for products
producers advertise goods and services
consumers determine how resources are allocated
consumers choose which products will be produced
5
Two ways of allocating scarce resources are:
supply and demand, and leverage
authority and consensus
supply and demand, and contest
command and control
6
What is the
opportunity cost
if we move from Point C to Point B?
100,000 pizzas
7,000 robots
both pizzas and robots
300,000 pizzas
7
Human capital is defined as:
the knowledge and skills that a labor resource possesses
hiring new people
how much money someone earns
the number of people in the workforce
8
Why would the richest person in the world experience scarcity?
Because prices are too high.
Because workers wages keep going up.
Rich people do not experience scarcity.
Because productive resources are limited.
9
An economic system formed around habits, customs and religion is ...
primitive system
archaic system
natural system
traditional system
10
What is the best characteristic of a
mixed
economy?
Farmers engage in a barter economy.
Government sets a minimum wage for private business.
Scarcity is experienced by all.
All factories produce for the government's needs.
11
In a market economy ...
prices reflect scarcity and wants
governments intervene
governments plan production
governments interfere
12
The outwardly bowed shape of the production possibilities curve tells us:
that growth is unsustainable
that marginal costs are expensive
that production is inefficient
how opportunity costs increase
13
The term "land" in factors of production means ...
real estate
dirt
natural resources
unfinished goods
14
An efficient economy is one in that ...
Gets more work done in less time.
Uses its resources with very little waste.
Makes a high profits for each product.
Has low levels of unemployment.
15
What does Point H represent?
The maximum amount we can produce right now.
An impossible level of production.
Our long-term hopes and dreams.
Nothing
16
Which choice is the correct example of opportunity cost?
You make a toy from leftover popsicle sticks.
Mr. King decides to buy a mule instead of new clothes.
Teachers take on the extra duty of driving buses.
You buy a new jacket with birthday money.
17
Of the three fundamental questions of economics, which is one of these options?
how much goods and services will cost
who will receive goods and services
how to produce goods and services
how goods are allocated
18
How do we define
opportunity cost
?
the value of the next best alternative that is given up
all other alternatives you give up to do what you want
spending money on what you want
marginal cost for non-fraudulent exchanges
19
Mr. Goodwrench, an auto mechanic, requires capital resources. These are:
money, a garage and employees
a garage, tools and a telephone
customers, tools and land
a garage, lenders and customers
20
In a command economy, the key driver of the economy is...
businesses
the government
entrepreneurs
consumers
21
Which is the best definition of scarcity?
unlimited wants outpace limited resources
the allocation of goods and services
a shortage of goods
not having enough money to buy stuff
22
Profit motive is defined as:
the desire to work
an incentive to make money
a business's desire to spend money
how a business creates income
23
Which choice from factors of production is an example of LABOR?
sweat produced when working
learning new skills
goods and services that are produced
mental activity when producing
24
What does the Production Possibilities Frontier tell us?
It maps trade between two nations.
It predicts when unemployment is rising.
It shows the possible outcomes when two goods are produced.
It tells us when we are in recession.
25
The study of economics is concerned with:
making sure businesses succeed
making choices to use scarce resources efficiently
customs and traditions
efficiently allocating society's products
26
Which economic system has a very low unemployment rate?
command
mixed
market
planned
27
The resources used to make all goods and services are called the...
factors of production
natural resources
production tradeoffs
the production frontier
28
The fundamental economic problem faced by all societies is ...
unemployment
inequality
scarcity
poverty
