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Econ unit 1 Flashcards | StudBud
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Econ unit 1
Econ unit 1
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econ unit 1
Flashcards
27 cards
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Practice quiz
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Questions
27
Answers
1
The study of economics is all about:
ending the problem of scarcity
the choices we have to make due to limited resources
how we should spend our money
production possibilities frontiers
2
Lulu has 3 different types of treats but can only choose one and must give up the other 2
incentives matter
future consequences count
markets coordinate trade
scarcity forces tradeoff
3
What does it mean to maximize utility?
To add one more unit of a good
To be as efficient as possible
To consume all goods and services
to get the most satisfaction
4
The circular flow model shows the relationship between:
factor and production markets
all of the above
labor and employers
Households and firms
5
True of false: an inward shift of the PPF curve represents economic growth.
true
false
6
Example: After running, the first drink of water is the best and the next drink is not as good
Law of diminishing marginal utility
Law of decreasing opportunity cost
Law of increasing marginal utility
Law of increasing opportunity cost
7
The only way to get to point B is:
secure better technology and more resources
produce only one good
add a third good to the PPF
trade with another country
8
An inefficient economy produces 80 pizzas & 20 robots: how many more robots should they produce
40
20
60
0
9
What is the opportunity cost of increasing beef production by 500 lbs from point A?
0 lbs of pork
500 lbs of pork
1000 lbs of pork
1000 lbs of beef
10
What does it mean to be efficient?
to get the most use of your resources
To get the most money for your product
To get the best resources
to make the best product
11
which type of economic system has no government involvement?
Market
traditional
Mixed
Command
12
Which type of economic system tends to have shortages due to their use of central planners for the economy?
Traditional
Mixed
Command
Market
13
What does this picture represent?
factors of business
Factors of production
productivity
specialization
14
Which princple: The decisions made today have a result not only for today but in days to come
Future consequences count
Incentives matter
cost v. Benefit
Thinking at the margin
15
The concept of the invisible hand by Adam Smith is connected to which economic principle?
future consequences count
cost versus benefit
incentives matter
Markets coordinate trade
16
An inefficient economy produces 80 pizzas & 20 robots: how many more Pizzas should they produce
80
100
0
160
17
What is the opportunity cost of increasing pork production by 300 lbs from point C?
100 lbs of beef
0 lbs of beef
300 lbs of beef
200 lbs of beef
18
Which principle: Ogie will only do his chores if he is given computer time.
thinking at the margin
Markets coordinate trade
Incentives matter
future consequences count
19
Which type of economic system has limited government intervention.
Command
market
mixed
Traditional
20
Which of the four factors of production is represented in the photo?
Capital resources
Entrepreneurship
Labor
Land
21
Which is an example of the thinking at the margin principle?
You decide to "supersize" your meal
you notice that the cost of shoes has risen from last year
you want a new car but can't afford it
You study for your test because you feel unprepared
22
Which type of economic system is planned by the government?
market
command
mixed
traditional
23
Which basic economic questions is missing: What to produce / how to produce and...
Who to produce for
When to produce
Where to produce
What price
24
What is opportunity cost?
the next best thing you give up when making a choice
the cost of production of goods / services
the amount of money you pay for a good / service
All of the things you must give up when you make a choice
25
Why don't people make everything they need anymore?
Trade makes people better off
Incentives Matter
Future consequences count
Thinking at the margin
26
Point A is:
Inmpossible given the current resources
possible but inefficient
The opportunity cost of moving from point B to C
maximum efficiency
27
Which type of economic system answers the question what to produce based on tradition?
command
mixed
traditional
market
