Chapter 1 & 2 Unit I Test Economics

United States' Economy

The study of people making choices about using scarce resources is...

Economy operating at a point on the production possibilities curve

Not able to have all the goods/services that one wants due to wants exceeding resources

Point X on the Production Possibilities Frontier shows...

What people would buy with unlimited income

Individually owned businesses, government provides some regulation and welfare programs

A flat screen tv is considered a...

Objects or products that satisfy a person's wants

Value of the next best alternative given up for the althernative that was chosen

Trees are an example of this factor of production

An action that is performed to satisfy a want

No government involvement in the economy

The invisible hand theory that people are self-interested came from...

Organized place for business to exchange goods/services for currency

Sacrificing one good or service for another

A state or government controlled economy or market

The bare necessities to survive

Eating slices of pizza, you get full and don't want anymore pizza this illustrates

This economist believed that the government had specific roles in society, it just should not be involved in the economy