What are the four factors of production?

Land, Labor, Capital, and Entrepreneurship

What is a planned economy?

Where the government decides how you answer the 3 basic econ questions

What is a market economy?

Where the people get to decide how to answer the 3 basic econ questions

Explain how a country's natural resources influence its decision on 'What to produce'?

Countries that have access to natural resources tend to choose to use them

Human made resources, like tools and equipment

How does scarcity affect our daily decisions?

We make decisions about what is most important to allocate our resources

Which best represents a mixed economy?

A mixture of planned and market economic systems

How can you determine if the exchange you are making is in the product or factor market?

By what is being bought or sold

Why might someone prefer living in a market economy over a planned economy?

The freedom to decide how to spend your life

How might a sudden increase in scarcity of a popular product (a new gaming console) affect its price and availability?

Prices might rise due to its limited availability

What is entrepreneurship?

Someone who combines the other three factors of production

Which best represents opportunity cost?

The value of the next best alternative when making a choice

Which of these is a benefit of capitalism?

You get to answer the 3 basic economic questions yourself

According to Friedrich Hayek’s philosophy of economics, what are two topics for which he advocated?

Strong Monetary Policy & A Gold Standard

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Econ Unit 1 Review

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Questions 30

Answers

1
What is labor?
Picking up where you left off
Time and effort spent by machines
Having to look away from your cell phone
Time and effort spent by humans
2
What is scarcity?
Where Scarface was filmed
City's visible, scar-like marks symbolizing resilient historical struggles
The fact that there are not enough resources to meet all wants & needs
Shortages of items such as toilet paper
3
What are the four factors of production?
Natural Resources, Actual Resources, Fictional Resources, Obscure Resources
Land, Labor, Capital, and Entrepreneurship
Chocolate, Naps, Exercise, and Books
Land Rover, Laboratory, Capital Punishment, Elon Musk
4
What is a planned economy?
Where you get to decide the 3 basic econ questions
Where you can do everything you want
Where the government decides how you answer the 3 basic econ questions
A dance style where steps are meticulously budgeted and allocated
5
What is a market economy?
Where you might go grocery shopping
Where the people get to decide how to answer the 3 basic econ questions
Where the people are told what they can and cannot produce
Wal-mart
6
A high interest rate means that loans are expensive
False
True
7
Explain how a country's natural resources influence its decision on 'What to produce'?
My great grandma made me a blanket out of wool
Countries that have access to natural resources tend to choose to use them
Not the correct answer
Countries that have access to natural resources may choose to ignore them
8
What is capital?
Natural resources, like trees and sand
Someone to combine the other three factors of production
Human time and effort
Human made resources, like tools and equipment
9
What is the central economic problem that all economic studies attempt to solve?
Scarcity
I want to go home
School Work
This test is the fundamental problem to my current life
10
What is economics?
People & their beverages
People and their voices
People & their choices
People & their families
11
What are the resources called that are needed to produce a good or service?
Factors of reproduction
Factoring equations
Factor market
Factors of production
12
How does scarcity affect our daily decisions?
We make decisions about what is most important to allocate our resources
We make decisions about what's least important in order to hoard things
People might avoid streets in Scarcity from fear of the historical scars
Residents might dress in historical costumes to blend in
13
Which best represents a mixed economy?
A mixture of planned and market economic systems
Communism
Refreshing beverage combining various fruits, herbs, and other ingredients
Pure communism
14
How can you determine if the exchange you are making is in the product or factor market?
The day's weather forecast
Flip a coin to decide
By what is being bought or sold
The market is determined by the latest fashion trends during the exchange.
15
Which of these is not an example of a natural resource?
Meat
Sandwich
Vegatbales
Wheat
16
What does the entrepreneur combine in order to produce goods & services?
Lucha, Libre, and Biblioteca
Land, labor, and Capital
Farms, Farmers, and Tractors
Ford, Chevy, and Dodge
17
How is a shortage different from scarcity?
Shortages are temporary
Scarcity and shortages are the exact same thing
Scarcity is strictly short on services
Shortages are permanent while scarcity is not
18
Which are two examples of a renewable resource?
Copper & Aluminum
Forest & Animals
Oil & Gold
Time & Land
19
Who is considered the father of economics and the classical school?
Adam Smith
Paul Smith
Shrek
Smith Candleson
20
Why might someone prefer living in a market economy over a planned economy?
The freedom to decide how to spend your life
Higher amounts of celebrity chef restaurants, offering superior dining
More shopping malls per square mile, ensuring high levels of retail therapy
Better weather, with more sunny days and perfect temperatures year-round.
21
What are two examples of a nonrenewable resource?
Forest & animals
Milk & cheese
Oil & milk
Oil & gold
22
How might a sudden increase in scarcity of a popular product (a new gaming console) affect its price and availability?
The gaming console will become more available
Prices tend to naturally improve
Businesses offer other goods and services
Prices might rise due to its limited availability
23
An increase in government spending leads to an ________________ in production
Stagnation
Increase
Decrease
Implosion
24
What is entrepreneurship?
Product market resources
Manager
Someone who combines the other three factors of production
Governments and their taxes
25
Which best represents opportunity cost?
An item you really want from the store
The value of the next best alternative when making a choice
Making a choice
Cell phone
26
The fundamental problem of bartering was solved with...
Eggs
Corn
Trading
Money
27
Which of these is a benefit of capitalism?
There is no scarcity in capitalism
Mo money, mo problems
You don't have to make an decisions
You get to answer the 3 basic economic questions yourself
28
Resources are sold in the product market
False
True
29
"Resource owners" refers to households
False
True
30
According to Friedrich Hayek’s philosophy of economics, what are two topics for which he advocated?
Strong Monetary Policy & A Gold Standard
Weak Monetary Policy & A Gold Standard
Strong Monetary Policy & A Silver Standard
Weak Monetary Policy & A Silver Standard

Econ Unit 1 Review Flashcards | StudBud