Opportunity Cost and Introduction to Economic Systems

Question 1

Why do we need to make decisions such as whether to use solar or nuclear power for electricity?

Accepted Answer

to decide HOW goods and services should be produced

Question 2

Getting the most from your resources is called

Accepted Answer

economic efficiency

Question 3

Opportunity cost is...

Accepted Answer

what you give up

Question 4

A trade off is...

Accepted Answer

a

Question 5

Rent is an example of a

Accepted Answer

factor payment

Question 6

Why is it important to decide what goods and services should be produced?

Accepted Answer

because resources are limited

Question 7

The decision to make more military goods or more consumer goods is known as..

Accepted Answer

guns or butter

Question 8

AKA a centrally planned economy

Accepted Answer

command economy

Question 9

Economic decisions are made by an individual and based on trade in this economy.

Accepted Answer

market economy

Question 10

This type of economy relies on habit and tradition to decide what to produce.

Accepted Answer

traditional economy

Question 11

Income that people receive for supplying the factors of production are:

Accepted Answer

factor payment

Question 12

You need a bed and a dresser for your new place. You buy the bed. The opportunity cost is

Accepted Answer

the dresser

Question 13

This type of economy is usually for small communities, like farming communities.

Accepted Answer

traditional economy

Question 14

Gov't programs that prevent people who are experiencing unfavorable situations

Accepted Answer

safety net

Question 15

In this type of economy, the government plays a limited role

Accepted Answer

mixed economy

Question 16

Mowing with a tractor instead of with 10 individual men mowing the lawn

Accepted Answer

economic efficiency

Question 17

In a command economy...

Accepted Answer

a central government answers the three economic decisions

Question 18

AKA the "free market"

Accepted Answer

market economy

Questions 18