Economists build economic models

to help analyze economic behavior

A production possibilities curve helps determine

the maximum combination of goods and services to be produced

Factors of production include which of the following?

land, labor, capital and entrepreneurship

After creating an economic model, how can you determine if the model represents reality?

by testing the model with facts from the real world

Pure Socialism is characterized by

centralized economic planning and state owning of property

According to Adam Smith

government should not interfere in the marketplace

Entrepreneurship refers to the ability to

start new businesses and introduce new products and services

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Economics Unit 1 Review

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Review over Unit 1 for Economics Course

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Questions 25

Answers

1
tangible items that people buy
scarcity
economics
goods
labor
2
In a capitalist system, most property is
private property
regulated by the government
owned by the government
owned by banks
3
Ecnomics is primarily concerned with which of the following?
future costs of goods
methods of production
values and objectives of a society
use of resources
4
Economists build economic models
to find out how high teenage unemployment is
to help analyze economic behavior
to help consumers determine their opportunity costs.
to describe how the factors of production should be combined
5
According to the author, a good economic theory is one that
is aesthetically sound
helps solve real problems
is as elegant as a theory in mathematics or physics
includes mathematics
6
A production possibilities curve helps determine
all of the opportunity costs and tradeoffs for a business
costs of production
the maximum combination of goods and services to be produced
factors of production
7
For this curve the country can produce 21 Units of Guns and how many Units of Butter?
5 Units
10 Units
6 Units
8 Units
8
It is easier to start your own business in a
command economy
free enterprise system
controlled economy
traditional economy
9
unlimited wants/needs with limited resources
economic model
labor
scarcity
economics
10
Factors of production include which of the following?
land, labor, capital and entrepreneurship
all of the products produced in an economy
goods and services
technology products and entrepreneurship
11
The work people do
economics
goods
scarcity
labor
12
What represents the opportunity cost if I move from point A to point C?
5 Units of Guns
4 Units of Guns
10 Units of Guns
3 Units of Guns
13
After creating an economic model, how can you determine if the model represents reality?
by testing the model with facts from the real world
by asking other economists for their opinions on the matter
by formulating theories about how the economy works
by recording the factors of production for a business
14
A major characteristic of a pure market economy is
unrestricted competition
regulated prices
an oversupply of labor
strong government planning
15
what is the basic problem of economics
scarcity
pricing
government policies
consumer behavior
16
A company's office buildings are an example of
Labor
entrepreneurship
Capital
Land
17
the study of how individuals and societies use limited resources to meet wants and needs
economics
scarcity
goods
labor
18
In the system described answers to the basic economic questions are determined by?
government leaders
individual consumers
customs and beliefs
market prices
19
Three Basic questions (what should be produced, etc.) are answered by what types of economies?
command economies
market economies
mixed economies
all economies
20
The value of the next best alternative that has to be given up for the action that is chose is
the productivity
the opportunity cost
the trade-off
the factor of production
21
Pure Socialism is characterized by
centralized economic planning and state owning of property
a complete absence of government
decision making based on traditions and customs.
individual ownership of the factors of production
22
According to Adam Smith
the role of government is to allocate resources
government should not interfere in the marketplace
lef to themselves, individuals would mishandle the economy
mixed economy combines all of the best of command and market
23
a visual representation that helps explain and predict economic behavior
scarcity
labor
economic model
goods
24
Entrepreneurship refers to the ability to
start new businesses and introduce new products and services
borrow capital successfully and expand an existing business
adapt technology efficiently
manage other people
25
The economic goals of the American Free-enterprise system include
choice, central planning, and security
freedom, equity, and growth.
profit, traditions, and government control
socialism that evolves into pure communism

Economics Unit 1 Review Flashcards | StudBud