Why are consumers powerful?

They help businesses decide what to produce

What is Gross Domestic Product?

A comprehensive measure of a nation's wealth

What is Opportunity Cost?

The value of the next best alternative

What are the Factors of Production?

Land, Labor, Capital, Entrepreneurship

Which is an example of consumer responsibility?

Making an informed purchase and reading/followinng all instructions

The Paradox of Value refers to ______.

The low value of essential items; high value of nonessential items

Why is the Division of Labor important?

It increases efficiency by having certain workers specialize a certain task

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Econ Chapter 1 Quiz

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Questions 16

Answers

1
Why are consumers powerful?
They help navigate opportunity cost
They vote for who makes goods
They help businesses decide what to produce
They own the factors of production
2
Society must answer three basic questions about the production of goods:
What, How, and For Whom
What, When, and For Whom
Where, Why, and How
Who, What, and When
3
Which is a Durable Good?
Clothes
Gasoline
Cars
Food
4
When managing resources, you need to evaluate all costs and benefits of each option. This is called _____.
Trade-Offs
Government Intervention
Opportunity Cost
Producer Responsibility
5
Which would result in a change of the production possibilities frontier in a country?
All of these
The discovery of a new natural resource
A massive natural disaster
Influx of many immigrants in a country
6
What is Gross Domestic Product?
A comprehensive measure of a nation's wealth
The amount of money a single household makes in a year
How much a business can produce in a year
A product in the market that is disgusting
7
What is Opportunity Cost?
The value of the next best alternative
How much workers are paid by their boss
The cost of not producing more goods or services
The costs a business faces
8
What are the Factors of Production?
Land, Labor, Capital, Entrepreneurship
Time, Money, Effort, Organization
Efficiency, Money, Welfare, Democracy
People, Resources, Management, Factories
9
Which is an example of consumer responsibility?
Consumers have no responsibilities when buying products
Robbing a store to acquire goods
Purchasing goods on the Black Market for a cheaper price
Making an informed purchase and reading/followinng all instructions
10
Which of the following shows all possible cominations of output?
The US Government
Supply and Demand Curve
Cost-Benefit Analysis
Production Possibilities Curve
11
The Paradox of Value refers to ______.
Changes in a country's GDP
The low value of essential items; high value of nonessential items
The inconsistent value of the same good across the market
The high value of essential items; low value of nonessential items
12
Which is a Nondurable Good?
A House
A Couch
Television
Water
13
What determines the value of a good or service?
Supply and Demand
Depends on which store a good or service is sold at
Opportunity Cost
Scarcity and Utility
14
The needs and wants of people are ______.
Varied and Unlimited
Limited and Similar
Exaggerated and Overdramatic
Unimportant
15
Why is the Division of Labor important?
It increases efficiency by having certain workers specialize a certain task
It prevents specialization
It divides the rich from the poor
It increases efficiency by making every work good at every task
16
Economics is best defined as how society deals with _______.
Money Management
Labor
The Factors of Production
Scarcity

Econ Chapter 1 Quiz Flashcards | StudBud