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Economics Fundamentals Assessment- Nev Flashcards | StudBud
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Economics Fundamentals Assessment- Nev
Economics Fundamentals Assessment- Nev
30 terms
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This is a Quiz to test our knowledge of the foundational ideas of #economics.
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
How do we define
opportunity cost
?
the value of the next best alternative that is given up
spending money on what you want
marginal cost for non-fraudulent exchanges
all other alternatives you give up to do what you want
2
In a command economy, the key driver of the economy is...
entrepreneurs
the government
consumers
businesses
3
Which choice is the correct example of opportunity cost?
Teachers take on the extra duty of driving buses.
Mr. Western decides to buy a car instead a of new shirt
You buy a new jacket with birthday money.
You make a toy from leftover popsicle sticks.
4
Which choice is a
capital
factor of production?
steel
Employing Mr Nevola
air conditioning
a computer
5
Which is the best definition of scarcity?
a shortage of goods
the allocation of goods and services
not having enough money to buy stuff
unlimited wants outpace limited resources
6
Profit motive is defined as:
how a business creates income
an incentive to make money
the desire to work
a business's desire to spend money
7
Angus wants to increase the size of his firm to take advantage of?
Economies of Scale
Internal Economies of Scale
External Economies of Scale
Diseconomies of Scale
8
The study of economics is concerned with:
making sure businesses succeed
customs and traditions
making choices to use scarce resources efficiently
efficiently allocating society's products
9
Why would the richest person in the world experience scarcity?
Because workers wages keep going up.
Rich people do not experience scarcity.
Because productive resources are limited.
Because prices are too high.
10
Of the three fundamental questions of economics, which is one of these options?
how goods are allocated
who will receive goods and services
how to produce goods and services
how much goods and services will cost
11
An economic system formed around habits, customs and religion is ...
traditional system
natural system
archaic system
primitive system
12
Human capital is defined as:
how much money someone earns
the knowledge and skills that a labor resource possesses
hiring new people
the number of people in the workforce
13
Mr. Goodwrench, an auto mechanic, requires capital resources. These are:
customers, tools and land
a garage, tools and a telephone
a garage, lenders and customers
money, a garage and employees
14
For a factor of production to be scarce, it must be...
rare and expensive
limited and desirable
unevenly allocated
unlimited and cheap
15
The fundamental economic problem faced by all societies is ...
unemployment
scarcity
inequality
poverty
16
The resources used to make all goods and services are called the...
the production frontier
natural resources
factors of production
production tradeoffs
17
What is the best characteristic of a
mixed
economy?
Scarcity is experienced by all.
Farmers engage in a barter economy.
Government sets a minimum wage for private business.
All factories produce for the government's needs.
18
Yumi wants to borrow money to grow her small company, the bank feels she is?
Not investible at all
Low Risk
able to have as large a loan as she wants
High risk
19
The term "land" in factors of production means ...
real estate
dirt
unfinished goods
natural resources
20
What does Point H represent?
An impossible level of production.
Our long-term hopes and dreams.
The maximum amount we can produce right now.
Nothing
21
Consumer sovereignty
is defined as ...
producers create demand for products
consumers determine how resources are allocated
producers advertise goods and services
consumers choose which products will be produced
22
The outwardly bowed shape of the production possibilities curve tells us:
that production is inefficient
that growth is unsustainable
how opportunity costs increase
that marginal costs are expensive
23
What is the
opportunity cost
if we move from Point C to Point B?
both pizzas and robots
7,000 robots
300,000 pizzas
100,000 pizzas
24
What does the Production Possibilities Frontier tell us?
It tells us when we are in recession.
It maps trade between two nations.
It shows the possible outcomes when two goods are produced.
It predicts when unemployment is rising.
25
When one decision is made, the next-best alternative is:
additive resource
opportunity cost
comparative disadvantage
comparative advantage
26
In a market economy ...
prices reflect scarcity and wants
governments intervene
governments plan production
governments interfere
27
Two ways of allocating scarce resources are:
supply and demand, and contest
supply and demand, and leverage
command and control
authority and consensus
28
An efficient economy is one in that ...
Makes a high profits for each product.
Uses its resources with very little waste.
Has low levels of unemployment.
Gets more work done in less time.
29
Which economic system has a very low unemployment rate?
planned
market
mixed
command
30
Which choice from factors of production is an example of LABOR?
sweat produced when working
learning new skills
mental activity when producing
goods and services that are produced
