Which of these best describes scarcity?

Limited resources to meet unlimited wants

What does a production possibility diagram assume?

Resources are fixed and technology is constant

The basic purpose of economic choice is to:

Decide how best to use limited resources

The role of the entrepreneur is to:

Combine resources to produce goods and take risks

In economics, what does the term "opportunity cost" refer to?

The benefit received from the next best alternative foregone

What is the "production possibility frontier" (PPF)?

A line that shows the trade-off between the production of two goods

Which of the following is considered a factor of production?

Natural resources like water and oil

Which of the following is a primary economic question?

What goods and services should be produced?

The opportunity cost of going to college is:

The income you could have earned working

What causes a movement along the PPD curve?

Reallocation of existing resources

Which of the following is considered land in economics?

A river used to generate hydroelectricity

A mixed economy features:

Both private and government sectors

Human capital refers to:

Skills and knowledge of workers

What is the definition of "scarcity" in economics?

The limited availability of resources to meet unlimited wants

studbud

Economics

20 termsStudBud Administration10 plays

Imported from external platform

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
Which economic system relies mostly on markets to allocate resources?
Market economy
Command economy
Mixed economy
Traditional economy
2
Which of these best describes scarcity?
Limited resources to meet unlimited wants
A temporary shortage of goods
Goods being expensive
Limited income
3
What does a production possibility diagram assume?
Prices are stable
Resources are unlimited
All goods are free
Resources are fixed and technology is constant
4
The basic purpose of economic choice is to:
Increase population growth
Decide how best to use limited resources
Maximize government revenue
Eliminate poverty
5
The role of the entrepreneur is to:
Control prices
Provide labor
Supply natural resources
Combine resources to produce goods and take risks
6
In economics, what does the term "opportunity cost" refer to?
The total cost of all resources used in production
The government-imposed taxes on businesses
The monetary cost of a good or service
The benefit received from the next best alternative foregone
7
What is the "production possibility frontier" (PPF)?
A line that shows the trade-off between the production of two goods
A model showing price fluctuations over time
A diagram that tracks government spending
A curve that represents consumer preferences
8
Which of the following is considered a factor of production?
Natural resources like water and oil
A company's brand recognition
Government policies
A consumer's income
9
A shift outward in the PPD means:
Increased unemployment
Decreased production capacity
Economic growth
Inefficient use of resources
10
Which of the following is a primary economic question?
How are goods and services distributed?
How much do goods and services cost?
How can income be equitably distributed?
What goods and services should be produced?
11
The opportunity cost of going to college is:
Books and tuition
Time spent studying
The income you could have earned working
Interest on student loans
12
What causes a movement along the PPD curve?
Economic growth
Reallocation of existing resources
An increase in resources
New technology
13
Which of the following is considered land in economics?
A river used to generate hydroelectricity
A laptop
A bank building
A teacher
14
A mixed economy features:
Both private and government sectors
Only public ownership
No government involvement
Only private enterprise
15
A command economy allocates resources primarily through:
Government planning
Private ownership
The free market
Traditions
16
Which point on the production possibility frontier (PPF) represents efficiency?
Any point on the curve
Any point inside the curve
The origin point
A point outside the curve
17
Human capital refers to:
Government workers
Buildings and machinery
Money owned by firms
Skills and knowledge of workers
18
An economy operating on the PPD curve is:
Producing efficiently
Wasting resources
Producing illegally
Not producing enough
19
What is the definition of "scarcity" in economics?
The allocation of resources based on needs
The limited availability of resources to meet unlimited wants
The unlimited availability of resources
The ability to create more resources through technology
20
Which of the following is an example of a renewable resource?
natural gas
oil
coal
wind

Economics Flashcards | StudBud