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Economics Basics Flashcards | StudBud
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Economics Basics
Economics Basics
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#economics
Flashcards
22 cards
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Questions
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Answers
1
What two character traits are assumed of people that act in a capitalistic market system?
rational and self-interested
greedy and hardworking
productive and thrifty
creative and risk averse
2
Limited resources and unlimited desires best describe the concept of what?
scarcity
natural resources
opportunity cost
sunk cost
3
Using an economic principle to pose and answer questions about pattern of events or behavior is known as
economic naturalism
natural rights
an ethical dilemma
self evident freedom
4
Which of the following best describes the cost vs. benefits principle?
choosing something when benefits are greater than costs
choosing something despite the condition of scarcity
choosing something when there are no tradeoffs
choosing something with no costs
5
The branch of knowledge concerned with production, consumption, and transfer of wealth.
economics
government
marketing
psychology
6
Which of the following best describes a pure free market?
competition and regulation
self-interest and voluntary exchanges
free market and unlimited government
unlimited capital and high wages
7
What are physical objects, such as clothing or shoes, known as?
markets
wants
services
goods
8
Using resources to maximize productivity is known as what?
self-interest
production
efficiency
marginal thinking
9
Family, government, economy, education, and religion are five of the most basic what?
myths
institutions
conglomerations
products
10
A decision-making problem between two possible moral choices, neither of which is acceptable or preferable is what?
economic problem
apathetic attitude
ethical dilemma
procrastination
11
People who create and sell products or services are known as what?
consumers
workers
borrowers
producers
12
Term for a process where natural aptitude is used to determine who is most suited for a task.
efficiency application
diversification
specialization
production possibilities
13
Which of the following provide motivation to pursue needs and wants?
costs
scarcity
incentives
natural resources
14
Which two items best describe a command market?
self-interest and voluntary exchanges
free market and unlimited government
unlimited capital and high wages
government directives and regulation of markets
15
The factors of production are what?
scarce, available, open
land, labor, capital
limited, regulated, abundant
goods, services, factories
16
A person who organizes the factors of production is known as what?
entrepreneur
general manager
producer
totalitarian
17
Which of the following best describes the economic law of comparative advantage?
producing goods at lower opportunity cost than competitors
producing goods cheaper than competitors
producing goods in greater quantities than competitors
producing goods with an absolute advantage over competitors
18
The study of how people seek to satisfy their needs and wants by making choice is known as what?
biology
philosophy
economics
psychology
19
The basic economic problem, the gap between limited resources and theoretically limitless wants, is what?
scarcity
incentives
opportunity cost
commodity
20
Decisions in a mixed economy are made by what?
government
entrepreneurs
firms and government
consumers and firms
21
What condition causes people to distinguish between needs and wants?
opportunity cost
self-interest
law of supply and demand
scarcity
22
The value of the next best alternative is known as the what?
shortage
opportunity cost
tradeoff
benefit
