Unit 1: Intro to Economics, PPF, Circular Flow Test Review

Improvement in technology, training for employees, better use of raw materials would push the Production Possibilities

Consumers control economic decisions

An entrepreneur would most likely have the best chance for success in this type of economy

Condition of limited resources combined with unlimited wants

Person/theory that shows how resources are divided up and how consumer demand plays a role in businesses supply

An economy operating at its production possibilities frontier is operating at

The exchange of one thing for another is known as

What takes place at the Factor Market

Karl Marx is associated with a Command Economy (Communism)

The study of efforts to satisfy unlimited wants with scarce resources

What takes place at the Product Market?

An increase in overall level of unemployment is an example of

Tools, equipment, and factories used in production

These are factors of production

Workers are abused by greedy business owners is a belief held by

Adam Smith is associated with Market System (Capitalism)

Referred to as "gifts of nature"

A great variety of goods and services is characteristic of this type of economy

A popular model used to illustrate the concept of opportunity cost

An economy where activities stem from ritual, habit or custom would be

Resources are hard to find on a temporary basis

The basic economic questions that must be answered

Choices in a command economy are made by

In a mixed economy based on capitalism, the role government plays

This is not considered a need

What must businesses invest in to produce goods more efficiently?

The value of the next best alternative that had to be given up when a choice is made is

Opening of a new theater is an example of

The amount of output (goods/services) that result from a fiven level of input (land, labor, capital, entrepreneur)

Which direction do goods and services flow?

A great variety of goods and services is characteristic of this type of economy

The American economic system has this type of economy

An economic system is successful when it _____ the needs of the most people possible

A basic requirement for survival