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Unit 1 Econ
Laissez Faire
The crucial problem of economics is
Unit 1 Econ
40 terms
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Review for unit 1 econ test
Flashcards
40 cards
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Practice quiz
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Questions
40
Answers
1
The crucial problem of economics is
enacting a set of laws that protects resources from overuse
allocating scare resources to satisfy unlimited wants
establishing a fair tax system
horcruxes
2
Laissez Faire
Let the people choose/government stay out
Land, labor, capital and entrepeneurship
most desirable alternative given up when making a decision
Satisfaction
3
The United States is a
Mixed Economy
Free Market Economy
Command Economy
Centrally Planned Economy
4
An economy at its production possibilities frontier is operating...
with slow economic growth
without division of labor
at full potential
as a free enterprise economy
5
In the circular flow diagram, which of the following is true in the product market?
businesses sell resources
businesses sell goods and services
households sell resources
households sell goods and services
6
What goods are needed to produce other goods and services?
Capital Goods
Consumer Goods
Tasty Goods
Labor Goods
7
Circular Flow of the Economy
Shows alternative ways a society can deal with scarcity
Shows alternative ways a society can produce goods
individuals, businesses, the resource and product market
Shows alternative ways a society can deal with markets
8
In a command economy the consumer decides what goods and services to produce.
False
True
9
The production possibilities frontier can be reached even if certain resources remain idle.
False
True
10
T/F - goods that are used to produce other goods and services are called capital goods.
True
False
11
When one decision is made, the next
best
alternative not selected is called
opportunity cost
production
scarcity
trade off
12
What factor of production do these images illustrate?
Capital
Labor
Land
Entrepeneurship
13
Three Economic Questions
Land, labor, capital and entrepeneurship
What to produce, how to produce it, and for whom to produce.
Let the people choose or government stay out
Unlimited wants and limited resources.
14
What factor of production do these images illustrate?
labor
land
capital
entrepreneurship
15
Which is not one of the four factors of production?
Labor
Capital
Experience
Land
16
Which of the following is not one of the Three Basic Questions of Economics:
How to produce
What to produce
Who to produce it for
When to produce
17
The purpose of government in a command economy is to
encourage entrepeneurs
make major economic decisions
ensure the availability of consumer products
promote economic freedom
18
This model is used to illustrate opportunity cost, scarcity and efficiency.
PPA
PPB
PPD
PPC
19
Time is an opportunity cost when a manufacturer assigns workers to one task instead of another.
False
True
20
Which group of people ultimately determines the products that a free market economy produces?
Congress
property owners
consumers
local government
21
Utility
Land, labor, capital and entrepeneurship
Satisfaction
Unlimited wants and limited resources.
These are goods used to produce other goods
22
The circular flow of economic activity describes an economy that is free of markets.
True
False
23
Factors of Production
What to produce, how to produce it, and for whom to produce.
All possible alternatives when making a decision
Let the people choose or government stay out
Land, labor, capital and entrepeneurship
24
The _____ organizes land, capital, and labor for production in hopes of earning a profit.
business
entrepeneur
worker
Coach Massey
25
Capital Goods
Goods used to make other goods.
Goods used by individuals.
Goods used for direct consumption
Goods that are tasty.
26
Consumer Goods
Unlimited wants, limited resources.
Goods used by businesses.
Goods most commonly purchased by individuals.
Goods used to make other goods.
27
Opportunity Cost
Best alternative given up
All things given up
Satisfaction
Happiness
28
What type of science is economics?
Hard science
Physical Science
Social Science
Relative Science
29
Free Market Economy
Centrally planned economic decisions.
Individuals answer the major economic questions
Where am I?
Government answers major economic decisions
30
Productions Possibilities Curve
Goods used to produce other goods
Model used to show supply and demand
Model that shows alternative ways to deal with scarcity
Model used to illustrate how goods and service flow.
31
What is the opportunity cost of moving from point A to point B
8 billion
2 billion
1 billion
7 billion
32
Command Economy
Individuals answer major economic questions.
Businesses answer major economic questions.
Governments answer major economic questions.
Coach Massey answers major economic questions.
33
The study of economics can help us become
healthier.
better at math.
better at science.
better decision makers.
34
Tradoff
The most desirable alternative
All alternatives when a decision is made
Unlimited wants and limited resources
What to produce
35
Which of the following goods would be considered scarce?
Education
Gold
Time
All of the above
36
Economics
Hard science used to make decisions
Goods purchased by businesses
Goods purchased by individuals
Social science concerned with use of scarce resources
37
Mixed Economy
Venezuela is an example of this kind of economy.
The United States is an example of this kind of economy.
Korea is an example of this kind of economy.
China is an example of this kind of economy.
38
In a free market, private citizens own the factors of production.
False
True
39
___ refers to the natural resources needed for production such as forests, water, and sun.
Mother Earth
Land
Labor
Capital
40
Scarcity
All alternatives given up
model shows alternative ways a society can use resources
unlimited wants, limited resources
best alternative given up
