Economics- Unit 1 Review

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

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

Market where productive resources are bought and sold

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

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

The situation of limited resources and unlimited needs and wants creates

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

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

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

Employment in service occupations refers to:

Tools, equipment, and factories used in the production of goods and services

Movement along the production possibilities frontier illustrates which economic concept?

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

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

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

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

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

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

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

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

Any combination/point below the production possibilities frontier illustrates

A good or services capacity to provide satisfaction or usefullness is known as

Which of the following is an investment in human capital?

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

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

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

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

Product intended for final use by consumers rather than businesses

Which of the following economic system has private property?

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

Risk taking individuals in search of profits

What do economic systems do?

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

Capitalism is most closely associated with what economic system?

Which of the following is NOT a basic economic question?

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

Any point/combination on the production possibilities frontier illustrates

Assignment of tasks so that each worker performs fewer functions more frequently

Which of the following examples best demonstrates opportunity cost?