Introduction to Economics Review

Question 1

Medical care is an example of a:

Accepted Answer

service

Question 2

According to the circular flow model, where do all resources/factors of production originate?

Accepted Answer

Households

Question 3

A production possibilities curve demonstrates which of the following concepts?

Accepted Answer

Tradeoffs

Question 4

The primary concept demonstrated by the Circular Flow Model is:

Accepted Answer

interdependence

Question 5

The basic elements used to produce goods and services are referred to as:

Accepted Answer

resources

Question 6

What is the incentive for exchanges to occur on the circular flow?

Accepted Answer

money

Question 7

If you buy a shirt instead of shoes, the value you would have gained from the shoes is your:

Accepted Answer

opportunity cost

Question 8

If your career choice is determined by your grandparents, you most likely live in a:

Accepted Answer

Traditional Economy

Question 9

The inability to meet all of everyone's wants and needs is referred to as:

Accepted Answer

scarcity

Question 10

The factor of production that includes the tools needed to produce a product is called:

Accepted Answer

capital

Questions 10