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Unit 1: Fundamentals of Economics - CIE3M1 Flashcards | StudBud
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Unit 1: Fundamentals of Economics - CIE3M1
Unit 1: Fundamentals of Economics - CIE3M1
20 terms
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#economics
Flashcards
20 cards
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Questions
20
Answers
1
2 economic assumptions: People make informed decisions & act in their own self interest
FALSE
TRUE
2
Scarcity and opportunity cost affect productivity and specialization.
True
False
3
Human, money and natural resources are
NOT
the 3 factors of production.
TRUE
FALSE
4
The opportunity cost of deforestation is ...
profits from building a new development on the land
natural beauty of the forest & animal homes
profits lost from not cutting down the trees
the money that could have been made selling the trees
5
Which of the following benefits pertain
specifically
to preferred stock holders?
more votes because they hold preferred stock
they receive fixed dividends
benefit from potential growth through rising share prices
they receive dividends
6
Which of the following factors would NOT shift the PPF outwards?
population increases due to immigration
increase in natural resources
tools acquired through investment
a forest fire devastates a community
7
Capital resources include...
people who work for businesses
tools like computers used in the production of other goods
crude oil or trees used in pulp & paper manufacturing
cash
8
A Lb of apples costs $2.60 in Ontario and $7.20 in the Northwest Territories. This illustrates:
the concept of marginal revenue
the concept of scarcity
that people in Ontario have fewer apples
that people in the NWT are rich
9
A benefit of a corporation is:
preferred shareholders get special treatment
limited liability
unlimited liability
you have to pay shareholders dividends
10
The three basic economic questions are:
none of the above
how to produce?what resources to exploit? who produces what?
who receives how much? what to produce? how to produce?
what to produce? who receives what? how to produce?
11
The concept of choice exists because...
of poverty
unlimited wants and needs
unlimited resources
of scarcity
12
In this economy efficient points of production are...
Points A, B, X
Points A, B, C
Points C, A, B, X, Y
Points A, B, C, Y
13
changes in economic activity that an economy experiences over time is demonstrated by:
The Classical Model
The Invisible Hand Model
The Keynesian Model
The Business Cycle Model
14
An example of a market driven goal is:
equity
environmental protection
economic freedom
security
15
Diversification is an ineffective way of reducing risk for your portfolio.
TRUE
FALSE
16
All economic goals are compatible.
False
True
17
The PPF could shift inwards if...
there was a war
a forest fire devastated a logging area
natural resources became more accessible
the number of workers remained the same
18
In the long run the economy could produce at output level Y if...
there is an earthquake that destroys the production plants
there is an improvement in tenology
there is an increase in qualified immigrants
education and training becomes available
19
What is the opportunity cost of building a residential neighbourhood on a soybean farm?
cost of workers hired to build the development
value of houses - value of soybeans
value of the houses sold in the development
the value of the soybeans the farm would have produced
20
The business model shows a regular, even pattern of growth in an economy.
TRUE
FALSE
