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Intro to Economics Review Flashcards | StudBud
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Intro to Economics Review
Intro to Economics Review
30 terms
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PPF, Opportunity cost, Scarcity, Circular flow
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
Which statement best describes the role of businesses within the circular flow model?
collect taxes from businesses and individuals
pay wages to the government
produce goods and services to sell to consumers
sell labor to businesses an pay taxes
2
Which best completes the list below? Labor, Natural resources/land,Capital, and _______
regulation
Entrepreneurship
Demand
Supply
3
Which of the following is an example of a command feature of the U.S. economy?
There are no food safety standards for restaurants
Government sets no regulations for the environment
There is no minimum wage
Government provides health care for the elderly and needy
4
Which of the following are key economic questions?
For whom?
How to produce?
All of the above
What to produce?
5
Mary studied for Economics She could have played the piano. Her opportunity cost of studying is
the amount of time it took to study
making brownies and playing the piano
playing the piano
making brownies
6
Nike’s shoe factory is a segment of which factor of production?
Labor
Land
Entrepreneurship
Capital
7
Which statement best describes the role of households within the circular flow model?
They pay wages to government
They produce goods and services to sell to consumers
They collect taxes from businesses and individuals
They sell labor to businesses and pay taxes to government
8
Which of the following scenarios would cause the PPC to shift inward or to the left?
Auto maker wants to produce trucks at the expense of cars.
A fire destroys a factory building and most of the machinery
A farmer acquires new land.
A pizzeria begins taking orders online
9
Production possibilities curve illustrates the____ facing an economy that___ only two goods.
trade-offs; consumes
prices; sells
trade-offs; produces
shortage; produces
10
What is the difference between microeconomics and macroeconomics?
Both B and C
Nothing
Macro studies the economy as a whole.
Micro is the study of economics at the individual level
11
Which of the following is the best definition for economics?
how to satisfy limited wants with unlimited resources
how to satisfy unlimited wants with limited resources
the study of how to complicate simple situations with math
the study of economic indicators
12
Tammy would like to purchase a new pair of shoes. This transaction would take place in . . .
the product market (goods & services)
the resource/factors market
HEB market
shoe palace
13
Tim saved $500 to buy a used car. He spent it on a trip and music. What is the opportunity cost
music downloads
used car
$100
the trip
14
What do economists mean when they say, “There is no such thing as a free lunch.”?
the cafeteria charges too much
everything has a cost
businesses that advertise free things are lying
learning economics is delicious
15
Firm can produce T-shirts or sweatshirts. Opportunity cost of producing T-shirts is measured by
Fixed cost of T-shirt production
Total cost of T-shirt production
Number of sweatshirts the firm chose not to produce
Variable cost of T-shirt production
16
Which of the following is NOT a factor of production?
Money
Land
Labor
Capital
17
The resources used to make all goods and services are the
factors of production
opportunity cost
production possibilities
production trade offs
18
In a pure market economic system, who makes decisions about what to produce?
Churches
Individuals
Government
Tradition
19
Which point indicates that resources are NOT fully utilized?
B. On the Curve
G. Above the Curve
F. Below the Curve
A. On the Curve
20
Which of these most directly contributes to the problem of economic scarcity?
People have to pay taxes to governments for services.
People must take risks to create and improve technology.
People have unlimited wants for goods and services.
People must earn money to provide for their families.
21
Which of the following is NOT a characteristic of capitalism or market systems?
Profit motive
Competition
Central planning
Private Property
22
In a command economy, the means of production are owned by
private citizens
the wealthy
corporate groups
government
23
After Tod's first week of work at Timmy Chan and gets a pay check. This transaction takes place
in the resource/factor market
at the bank
chicken wings!
in the product market (goods & services)
24
The cost of a trade off is known as its . . .
future cost
opportunity cost
real cost
explicit cost
25
Which of the following statements is TRUE about the Production Possibilities Curve?
increasing opportunity cost is why the PPC is straight line
Without trade, a point above the PPC is unattainable.
Every point along the curve is inefficient
Every point inside or to the left of the curve is efficient.
26
Which point is unattainable on the PPC
A. On the Curve
G. Above the Curve
F. Below the Curve
D. On the Curve
27
To move along the curve from point B to C requires
increase in number of workers
decreasing the output of capital goods
an act of god
change in technology
28
The lack of which of the following represents scarcity?
Enough workers to work night shift because the pay is low
Grapefruit juice because very few people want to buy it
Orange juice when trucks carrying it are on strike
Oil in the world today
29
College graduates are a segment of which factor of production?
Goods
Land
Profit
Labor
30
Which statement best describes the role of government within the circular flow model?
sell labor to businesses and pay taxes
sell their labor to households
collect taxes from individuals and businesses
pay wages to businesses
