What is the best characteristic of a mixed economy?

Government sets a minimum wage for private business.

Which choice is the correct example of opportunity cost?

Mr. King decides to buy a mule instead of new clothes.

What does the Production Possibilities Frontier tell us?

It shows the possible outcomes when two goods are produced.

Human capital is defined as:

the knowledge and skills that a labor resource possesses

Of the three fundamental questions of economics, which is one of these options?

how to produce goods and services

How do we define opportunity cost?

the value of the next best alternative that is given up

Consumer sovereignty is defined as ...

consumers choose which products will be produced

Which is the best definition of scarcity?

unlimited wants outpace limited resources

In a market economy ...

prices reflect scarcity and wants

An efficient economy is one in that ...

Uses its resources with very little waste.

What does Point H represent?

An impossible level of production.

The study of economics is concerned with:

making choices to use scarce resources efficiently

Why would the richest person in the world experience scarcity?

Because productive resources are limited.

Mr. Goodwrench, an auto mechanic, requires capital resources. These are:

a garage, tools and a telephone

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Duplicate of Economics Fundamentals

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This is a Quiz to test our knowledge of the foundational ideas of #economics.

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Questions 28

Answers

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

Duplicate of Economics Fundamentals Flashcards | StudBud