Relationship of unlimited wants & needs and limited resources

Who decides what to produce in a command economy?

The government decides to what will be produce.

Economists use a production possibilities curve to reveal

trade-offs and opportunity costs

What role does the government play in the U.S. economy?

it collects taxes, provides goods, provides services

What is a traditional economy?

an economy controlled by traditions, customs, and beliefs.

What is an entrepreneur?

Someone who undertakes a risk to create their own business.

What are the factors of production?

Land, Labor, Capital, entrepreneurship

What is an opportunity cost?

Cost of the next-best alternative use of money & time.

What is marginal analysis?

Cost and benefits of the add of one unit of an input or good

A society that is producing on its production possibilities curve...

Fully utilizing all of its productive resources.

What is an example of traditional economy?

Barter of hunted prey used by Inuit tribe in northern Canada

something you can live with out

Something that you need to live

A Production possibilities Curve...

shows how much I can produce of 2 goods

A point outside the production possibilities curve would represent

A combination thatcannot be achieved due to scarcity

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Economics Unit 1: Fundamentals

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Questions 25

Answers

1
What is scarcity?
Objects that people value and produce to satisfy their wants.
Relationship of unlimited wants & needs and limited resources
Time and effort devoted to the production of goods, services
Expansion of international trade
2
Who decides what to produce in a command economy?
The people will decide what will be produced.
The buyers will decide what will be produced.
The voters decide what will be produced.
The government decides to what will be produce.
3
What are the 3 basic Qs?
All the above
How will these goods and services be produced?
What goods and services will be produced?
For whom should share the goods and services be produced?
4
Economists use a production possibilities curve to reveal
profits
trade-offs and opportunity costs
curves in Economics
factors of production
5
What role does the government play in the U.S. economy?
it collects taxes, provides goods, provides services
it provides national defense
it provides private businesses
it passes and enforces laws
6
Laissez Faire economics means that the government plays a ________ role
Limited
Corrupt
Major
Total
7
What is a traditional economy?
an economy controlled by traditions, customs, and beliefs.
an economy controlled centrally by a government.
All of the above
an economy driven by country's individual citizens
8
What is an entrepreneur?
A teacher
Someone who undertakes a risk to create their own business.
A manager
A person who buys stuff.
9
An increase in productive capacity can be shown on the production possibilities curve by:
decrease shift to right
decrease shift to left
increase shift to left
increase shift to right
10
How many factors of production are there?
6
10
3
4
11
What are the factors of production?
Land, Labor
Capital, entrepreneurship, Laziness, Nothing
Physical and human capital
Land, Labor, Capital, entrepreneurship
12
What is an opportunity cost?
The cost of a new pair of shoes.
A graph demonstrating the equilibrium point.
A chart determining where monopolies occur.
Cost of the next-best alternative use of money & time.
13
You buy a football instead of a basketball. What is the opportunity cost?
football
soccer ball
basketball
softball
14
You buy a movie instead of a video game. What is the opportunity cost?
iPad
video game
television
movie
15
What is marginal analysis?
The difference between total revenue and total cost
The point at which a business is able to sell all its output
A tool used in finance to calculate interest rates
Cost and benefits of the add of one unit of an input or good
16
An economic system that is based on private ownership of the factors of production:
command
competition
consumer sovereignty
mixed or market
17
In the four factors of production, a bulldozer is
Capital
Labour
Tertiary Industry
Enterprise
18
Any point outside the production possibilities curve...
I attainable only if prices fall.
Is attainable only if prices rise.
Is unattainable.
Represents unused resources.
19
A society that is producing on its production possibilities curve...
Fully utilizing all of its productive resources.
Not being technologically efficient.
Not utilizing all of its resources.
Producing too much output.
20
What is an incentive?
Getting you way
A shift in the PPC curve
Motivates one to do something
A good smell
21
What is an example of traditional economy?
Barter of hunted prey used by Inuit tribe in northern Canada
Hong Kong, Singapore, Australia and the United States
Law of supply and demand
Soviet Union, China, North Korea and Cuba
22
What is a want?
something for survivial
something you can live with out
something someone does for you
23
What is a need?
Something you sell
Something that you need to live
Something expensive
24
A Production possibilities Curve...
shows how much I can produce of 2 goods
Shows how much I can consume
Shows how much I can produce of all goods
is Fake Newz
25
A point outside the production possibilities curve would represent
Full employment ofresources in the economy
An efficient use ofresources
An inefficient use ofresources
A combination thatcannot be achieved due to scarcity

Economics Unit 1: Fundamentals Flashcards | StudBud