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Basics of Economics Flashcards | StudBud
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Basics of Economics
Basics of Economics
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StudBud Administration
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TCI ch 1-4
Flashcards
27 cards
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Practice quiz
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Questions
27
Answers
1
What is the opportunity cost of going from 0 to 6 wheat?
6 guns
3 guns
3 wheat
9 guns
2
Which economic principle best applies: John cannot get a job with the government because he had a DUI at the age of 22.
Cost vs. Benefit
Trade benefits everyone
Thinking on the margin
Future consequences count
3
What is happening at this point?
Resources are being marginalized
Resources are being maximized
Resources are being underutilized
This point is currently impossible
4
The economic system of a communist country is most closely related to which of the following?
Command economy
Market economy
Mixed economy
Traditional economy
5
What is economics the study of?
Taxes and stock market
Use of scarce resources
Supply and demand
Money
6
What three questions must all society answer?
What, How, and for Whom to produce
How, Where, Who is going to produce
What, When, Where to produce
What, How, and Who is going to produce
7
Which economic principle best applies: My time is limited so should I go to the party or study for the test?
Thinking on the Margin
Future consequences count
Trade benefits everyone
Scarcity forces tradeoff
8
The nation that can produce a good at a lower opportunity cost than the other nations has: ____ ?
Scarcity
Absolute advantage
Lower Opportunity cost
Comparative advantage
9
Something offered to get people to act in a certain way is called
Incentive
Utility
Opportunity cost
Real cost
10
Which of the following is found in a market economy
Free labor force
Government control of agriculture
Competition between businesses
Government control of industry
11
The country that can out produce the other nations has an: ____
Comparative advantage
Market economy
Scarcity
Absolute advantage
12
Which of the following BEST describes a market system?
the government provides services, such as television
the government provides food and housing to all workers
businesses are owned by the government
a person can start any legal business and charge any price
13
How are goods and services exchanged in a traditional economy?
Through government regulation
Through shortages and surpluses
Through bartering
Through prices and wages
14
Which country has absolute advantage in cars/
Both Countries A & B
Country B
Neither countries
Country A
15
What is the basic economic quesiton/
Making difficult choices
Finding someone willing to risk staring a new business
unlimited wants but limited resources
Too many natural resources to use
16
Which country has comparative advantages in cars?
Country A
Both Country A & B
Country B
Neither
17
Specialization and trade occurs because
Its fun to do so
Countries can make a lot of money
Makes sense to focus on special type of product
Countries are unable to produce everythin g
18
Most democratic nations have a ______ economy
Traditional
Mixed
Market
Command
19
the value of the next best option in a decision is called
Opportunity cost
Income tax
Marginal cost
Real cost
20
Which economic principle best applies: deciding on if you should buy 6 or 7 pairs of shoes at the shore
Trade benefits everyone
Markets coordinate trade
Future consequences count
Thinking at the Margin
21
The four factors of production are
land, labor, capital, entrapreneur
land, labor, business, machinery
land, resources, business, machinery
capital, enterprise, labour, resources
22
What is the economic definition of scarcity?
situation in which something is hard to find
Situation in which something is rare
situation in which items are expensive
lack of enough resources to satisfy our wants
23
What is the purpose of a PPC?
show scarcity
show trade-offs
show real cost
show value
24
Which factor of production would a car be?
Entrepreneur
Land
Capital
Labor
25
Which economic principle best applies: Moe's advertises that "Kids Eats Free on Tuesdays!"
Incentives matter
Markets coordinate trade
Cost vs. Benefits
Future consequences count
26
If you start your own business, what factor of produ ction is that?
Land
Capital
Labor
Entrepreneur
27
What is happening at this point?
This point is currently impossible
Resources are being maximized
Resources are being underutilized
Resources is being efficient
