stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Unit 1 Review Flashcards | StudBud
Explore
/
Unit 1 Review
Unit 1 Review
44 terms
·
StudBud Administration
·
1,295 plays
Econ Unit 1 Review
Flashcards
44 cards
F
Practice quiz
P
Host live
L
Questions
44
Answers
1
Which point is impossible without new resources?
E
A
F
C
2
Scarcity
forces society to make choices
only affects the poor countries
makes all societies better off
is not a problem for wealthy countries
3
"There is no such thing as a free lunch" means
True costs only involve money
Someone else had to pay for the lunch
Every choice has an opportunity cost
You get what you pay for
4
Which does NOT increase productivity?
technological advancements
more capital available for workers
hiring more workers
division of labor
5
What is the OC of moving from C to D?
25 Clothes
50 Clothes
25 Food
50 Food
6
What might have caused this shift in the PPC?
more resources
improved technology
an increase in the unemployment rate
a large natural disaster
7
Which one is a capital good?
Leather used to make a jacket
Sugar that goes into candy
A refrigerator in your home
A cash register in a supermarket
8
At Q2...
MC > MB
MC = 0
MC = MB
MC < MB
9
Which is NOT a factor of production?
Intermediate goods
Natural resources
Tools and machinery
Entrepreneurs
10
Who decides what will be produced in a market economy?
consumers
Government
product markets
economists
11
What will shift a PPC outward?
more capital
more natural resources
better technology
All of the above (and to the left)
12
Depletion of fish stocks in a lake is an example of
positive externalities
free riders
the law of diminishing returns
the tragedy of the commons
13
What is opportunity cost?
Benefit you receive from your actions
Money charged for new opportunities
$19.99 plus tax
Loss of your next best alternative
14
Who are the buyers of resources in the circular flow?
Firms
Product Markets
Households
Neighborhoods
15
An individual who creates a new business
Entrepreneur
Laborer
Human capital
Businessperson
16
An intermediate good for candy would be
a worker who adds ingredients
a mixing machine to make the candy
sugar that goes into the candy
store shelves that display the candy
17
Which system best serves the wants of consumers?
Command Economy
Socialism
Traditional economy
Market economy
18
An incentive to work, save, and invest
voluntary exchange
unemployment insurance
conspicuous consumption
private property
19
Laissez faire calls for
nationalization of private companies
minimal government intervention
a progressive tax system
socialism
20
Which is NOT an economic goal?
Economic freedom
Economic security
Economic uncertainty
Economic efficiency
21
You are deciding between a hamburger or a hot dog, both of which cost $6. You choose the hot dog. What is your OC?
the time spent waiting in line
$6 plus tax
the hamburger
the hot dog
22
On a PPC, an economy is efficient if, when we produce more of one good,
the cost of production decreases
we can also produce more of the other good
we lose production of the other good
the PPC shifts outward
23
Adam Smith said this guides the free market
welfare capitalism
invisible hand
paradox of value
conspicuous consumption
24
Which goal is least emphasized in a pure free market?
economic efficiency
economic security
economic growth
economic freedom
25
Which point represents an inefficient use of resources?
A
C
F
E
26
Title of Adam Smith's book
The Wealth of Nations
The Invisible Hand
The Art of the Deal
The Declaration of Independence
27
Why did Lebron James skip college?
He could not get accepted
He didn't know how to read
His opportunity cost was too high
He went straight to medical school
28
In a pure command system, individuals have the freedom to
None of the above (or to the left)
open a business
buy and sell real estate
choose careers
29
Which is NOT one of the three basic questions?
How to produce?
For whom to produce?
Who owns productive resources?
What to produce?
30
Characteristic of a traditional economy
freedom of choice
technological stagnation
focus on heavy industry
advanced robotics systems
31
Macroeconomics
does not matter in the modern world
ALL of the above (and to the left)
deals with individuals
deals with large groups or the country
32
What is economics?
how money flows through society
the science of working and saving
supply and demand
fulfilling our wants in a world of scarcity
33
Adam Smith said this is driving force behind the invisible hand:
greed
self-interest
invisible arms
pride
34
Which is most likely a market economy?
Cuba
India
North Korea
Singapore
35
Who answers the basic questions in a command economy?
Central bankers
Businesses and consumers
Individual citizens
Central government
36
At what point will this person stop?
Q1
Never!
Q*
Q2
37
How can we avoid the tragedy of the commons?
destroy the resource
acquire more resources
communal ownership
private ownership
38
For each additional unit, OC increases
constant returns to scale
economies of scale
law of increasing opportunity cost
increasing marginal product of labor
39
What choice is made "at the margin"?
to go on vacation
what to study in college
moving to another state
buying a larger or smaller diamond
40
An example of human capital
Training and education
Office space and factories
Technologically advanced androids
Washington D.C.
41
Productivity is
value of output per each worker hour
not a major concern for most companies
impossible to calculate
total production
42
Land, labor, capital, and entrepreneurs
Factors of production
Results of production
Basis of employment
Circular flow components
43
Market economies are characterized by
scarce resources and price controls
an unlimited quantity of resources
government control of property
private property rights and price incentives
44
An economic example of "land"
a chicken sandwich
Disneyland
an apple orchard
a parking structure
