How does competition benefit consumers?

Newer and better products will be created

The knowledge and skills someone has

Which can take place in a free enterprise economy?

A business decides what it wants to make and for whom

Opportunity Cost is...

The most desirable alternative given up

What is the idea of productivity?

More can be made using the same resources

What does the circular flow model show?

How governments, businesses, and consumers interact

What does a productions possibility curve show?

The resources that a firm has and what it may produce

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Econ - Ch 1-3 - McKinney

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Questions 13

Answers

1
How does competition benefit consumers?
Unpopular products will remain in the market
Consumers will have fewer choices
Newer and better products will be created
More expensive products will dominate the market
2
Which type of economy gradually adjusts to change?
Socialist economy
Command economy
Mixed socialist economy
Market economy
3
Human Capital is
The promotion in a certain field
The money that people receive (salary or wage)
The physical body being put to work
The knowledge and skills someone has
4
Which of the following IS NOT a factor of production
Land
Capital
Taxes
Labor
5
Which can take place in a free enterprise economy?
A business decides what it wants to make and for whom
Consumers decide rules for keeping inflation in check
The government decides what products a business will produce
The government mandates a standard of living
6
Which occurs when a free market capitalistic system produces more and better products?
The Gross Domestic Prodcut decreases
The market's ability to react to change decreases
The variety of goods decreases
Wealth is created
7
Opportunity Cost is...
The money received when applying your human capital
The amount you have to pay in order for a good
The most desirable alternative given up
The lost revenue when hiring an individual
8
What is the idea of productivity?
More capital and labor are added to production
More can be made using the same resources
More resources are added to an economy
More specialization increases the number of workers
9
Food is an example of
A nondurable consumer good
A durable consumer good
A durable capital good
A nondurable capital good
10
This image demonstrates which type of economy?
Traditional Economy
Market Economy
Free Market Enterprise
Command Economy
11
What does the circular flow model show?
How a mechanism makes the economy run smoothly
How the product and factor markets influence the electronic market
How economists, businesses, and the government interact
How governments, businesses, and consumers interact
12
What is a characteristic of a command economy?
Competition
The profit motive
Lack of economic freedom
Voluntary Exchange
13
What does a productions possibility curve show?
The resources that a firm has and what it may produce
The trending items in a market
The different products produced in a given month
The number of items it should produce to meet a quota

Econ - Ch 1-3 - McKinney Flashcards | StudBud