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Economics Units 1-2 Review Flashcards | StudBud
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Economics Units 1-2 Review
Economics Units 1-2 Review
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#Econ
Flashcards
48 cards
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Questions
48
Answers
1
Economic Principle used when a flea market hosts many different vendors
Future consequences count
costs vs benefits
Markets coordinate trade
Trade Makes People better off
2
Which is NOT one of the 4 Factors of Demand Elasticity?
Necessities versus Luxuries
Price Relative to Income
Marginal Utility
3
Which of the following is NOT a demand shifter?
Changes in consumer expectations
Changes in government policy
Changes in consumer tastes and preferences
Changes in the price of a complimentary good
4
Law of Demand- as the price of a good or service increases, the quantity demanded
Decreases
Increases
5
Which is not one of the 3 fundamental Economic Questions?
Who sets the prices on the goods and services?
What goods and services are to be produced?
How are goods and services to be produced?
For whom are goods and services to be produced?
6
Law of Diminish Marginal Utility- as your consumption (+), the marginal utility
Increases
Decreases
7
Actions of people & govt have effects that are not expected or intended
Invisible Hand
Rationale Behavior Model
Law of Unintended Consequences
8
Necessary for survival, these are limited
Wants
Goods
Needs
Services
9
Idea that the economy will fix itself
Invisible Hand
Rationale Behavior Model
Law of Unintended Consequences
10
Price Ceiling (2 answers)
Used to protect Consumers from overpaying
Maximum price set by the govt
Minimum Price set by the govt
Used to Protect Producers & help them make a profit
11
How would an increase in the price of pears effect the demand for apples?
Demand for apples would decrease, Price of substitute good
Demand for apples would increase, Price of substitute good
12
Idea that people will make decisions based on reason and self interest,
Law of Unintended Consequences
Invisible Hand
Rationale Behavior Model
13
Value of the next best alternative given up
Scarcity
Opportunity Cost
Resources
Shortage
14
Who is the Godfather of Economics
Boris Yeltsin
Alfred Marshall
Adam Smith
Karl Marx
15
Normative Economics
Type of analysis that focuses on how things ought to be done
Type of analysis that describes how things are
16
Economic Principle used when taking advantage of a rewards card such as a speedy card
Costs vs Benefits
Scarcity Forces Tradeoff
Incentives Matter
Thinking at the Margin
17
Economic Principle used when you decide not to speed because you do not want a ticket
Costs vs Benefits
Markets Coordinate Trade
Trade Makes People better off
Future Consequences Count
18
Economic Principle used when deciding if the money from a summer job is worth the time
Incentives Matter
Thinking at the margin
Scarcity forces tradeoff
costs vs benefits
19
Knowledge and skills that people gain from education, training and experience
Financial Capital
Capital Goods
Physical Capital
Human Capital
20
Activities Done for us by others
Needs
Goods
Services
Wants
21
Condition that results because people have limited resources and unlimited wants
Opportunity Cost
Shortage
Resources
Scarcity
22
Which of the following is NOT a supply shifter?
Changes in technology
Changes in number of producers
Changes in producer expectation
Change in number of consumers
23
Price Floor (2 Answers)
Maximum price set by the govt
Minimum Price set by the govt
Used to protect the producers and help them make a profit
Used to protect the consumers from overpaying
24
The 4 methods of allocation and distribution include? (Select the two correct answers)
Economic Freedom, Scarcity
Ability to Pay, First Come First Serve
Equal Distribution, According to Need
Demand, Shortage
25
How would a decrease in the price for peanut butter effect the demand for jelly
Demand for jelly would decrease(Price of Complimentary Good)
Demand for jelly would increase(Price of Complimentary Good)
26
Which is NOT a supply shifter?
Changes due to natural disasters or international events
Changes in Elasticity
Changes in government policy
Changes in the cost of inputs
27
Study of how people choose to use their limited resources to satisfy their unlimited wants
Economics
Marginal Utility
Opportunity Cost
28
Economic Principle used when you help your friend study and they help you fix your car
Costs vs benefits
Trade makes people better off
Future consequences count
Markets coordinate trade
29
What are 2 of the 4 Roles of Prices (2 Correct Answers)
Create incentives to work and produce
To increase elasticity
Allow markets to respond to changing conditions
30
Economies and their real world names Which is NOT correct?
Market = Socialism
Command = Communism
Market = Capitalism
Mixed = Socialism
31
Which of the following is NOT a demand shifter?
Changes in the Price of Substitute Goods
Changes in Income
Changes in Number of Consumers
Changes in Number of Producers
32
Anything used to produce a good or service
Opportunity Cost
Shortage
Resource
Scarcity
33
What are 2 of the 4 Roles Prices Play (2 Correct Answers)
Convey Information to producers and consumers
Create a surplus
Allocate scarce resources efficiently
34
Which is NOT one of Government's 3 Responsibilities in a Mixed Economy
Protection
Create Scarcity
Public Benefits
Regulation
35
Select the 6 Economic Goals (Select the 3 Correct Answers)
Income, Needs
Freedom, Equity
Efficiency, Growth
Security, Stability
36
Things that make us happy, these are unlimited
Goods
Services
Wants
Needs
37
Law of Supply- as the price of one a good or service increases, the quantity supplied
Increases
Decreases
38
Inelastic
large response to a change in price
little to no response to a change in price
39
The extra satisfaction you get from an increase of one additional unit of a good or service
Marginal Utility
Opportunity Cost
Productivity
Negative Utility
40
Which is NOT one of the 4 factors of Demand Elasticity
Time
Scarcity
Availability of Substitutes
41
Production Possibilities Curve
Measures Efficiency
Shows the best an economy can do w/ its current resources
All of the above are correct
Also called Production Possibilities Frontier
42
Elastic
large response to a change in price
little to no response to a change in price
43
Types of resources, which is NOT one of the 3 resources?
Productivity
Labor
Capital
Land
44
Positive Economics
Type of analysis that focuses on how things ought to be done
Type of analysis that describes how things are
45
4 Traits of an Entrepreneur (2 Correct Answers)
Sparkplug & Risk Taker
Strategist & Innovator
Wealthy & Educated
46
A lack of something that is desired, when quantity demanded is greater than quantity supplied
Shortage
Resources
Opportunity Cost
Scarcity
47
Physical objects produced for sale
Needs
Wants
Goods
Services
48
Economic Principle used when deciding whether or not to have one more or one less of a good.
Costs versus benefits
Thinking at the margin
Incentives Matter
Scarcity forces tradeoff
