an action that one person performs for another, for pay

In economics terms, define land.

any natural resource on earth, in the earth, or in the water

Three basic types of economic systems are:

free enterprise, command economy, mixed economy

what is an economic systems?

The ways in which society answers the economic questions.

Scarcity exists because...

we have unlimited wants and needs, resources are limited.

In economics terms, define land.

any natural resource on earth, in the earth, or in the water

What is the purpose of a production possibilities curve?

to show alternative ways to use an economy’s resources, to predict maximum output for two goods

Identify the most desirable alternative given up when we make a decision.

the best trade-off, the opportunity cost

What can be produced with various combinations of resources

What does a straight PPC curve indicate?

Similar resources, Constant opportunity costs

What is a shifter of the PPC?

Trade, Change in resources, Change in technology

The invisible hand refers to

Self-interest sometimes leading to social interest

Economics is the study of...

how society manages its scarce resources., the choices individual make to satisfy their wants & needs.

What is Laissez-Faire Economics?

Society will be better without government in free market.

The invisible hand is...

Part of that one guy from Hotel Transylvania, The overall societal benefit provided by people acting in self interest

Define factors of production.

the resources used to produce all goods and services

an alternative we sacrifice when we make a decision

Due to the scarcity problem, all societies must answer which questions?

Societies must answer all of these questions.

Efficiency along the PPC implies...

To get more of a good, some of another must be given up

What is an economic system

Production resource and allocation of goods within a society

What are Economic Resources?

things available to be used to produce goods and services

What does a bowed PPC curve indicate?

Increasing opportunity cost, Different resources

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GCO 1 Test Review

45 termsStudBud Administration145 plays

scarcity, entrepreneur, factors of production, opportunity cost, trade-offs, thinking at the margin, production possibility curves, efficiency, growth, cost

Flashcards45 cardsFPractice quizPHost liveL

Questions 45

Answers

1
Define service.
study of goods and services
resources on the earth, in the earth and in the water
items that an entrepreneur produces from nature
an action that one person performs for another, for pay
2
All are economic systems except ........
Banking System
Command Economy
Free Market Economy
Mixed Economy
3
This is a ppc graph
True
False
4
In economics terms, define land.
any resource used to maximize the production of services
any resource made by humans
any natural resource on earth, in the earth, or in the water
any resource used to maximize the production of goods
5
Three basic types of economic systems are:
free market, natural resources, labor
free enterprise, command economy, mixed economy
what to produce, how to produce, who will receive the goods and services
individual rights, state rights, mixed rights
6
what is an economic systems?
A system where power distribution is included.
The ways in which society answers the economic questions.
the ability to produce more of a given amount of resources.
A system on private ownership trade between buyers sellers.
7
Scarcity exists because...
we have limited wants and needs.
we have unlimited wants and needs
there are unlimited resources.
resources are limited.
8
Identify ALL of the factors of production.
land
labor
land, labor, capital
capital
9
In economics terms, define land.
any resource used to maximize the production of services
any resource used to maximize the production of goods
any natural resource on earth, in the earth, or in the water
any resource made by humans
10
What is the purpose of a production possibilities curve?
to show alternative ways to use an economy’s resources
to have fun drawing lines and dots
to make an economy look good
to predict maximum output for two goods
11
What does laissez-faire mean in terms of economic systems?
Hands off
Lazy Fair
Lace Fairy
Less Fire
12
Identify the most desirable alternative given up when we make a decision.
the best alternative
the best trade-off
the opportunity cost
all trade-offs
13
Where would no production fall on the PPC?
at the point of origin or 0, 0
all the way to the right on the x axis
near the 10 and the 6
all the way at the top of the y axis
14
economics is only about money
True
False
15
A PPC shows...
The best combination of goods to produce
What can be produced with various combinations of resources
Resources are constrained by choices
The plans for increasing output in the short run
16
What does a straight PPC curve indicate?
All points are equal
All consumers are heterozygous
Similar resources
Constant opportunity costs
17
What is a shifter of the PPC?
Price
Trade
Change in resources
Change in technology
18
The invisible hand refers to
the idea that all actions require sacrifice
Self-interest sometimes leading to social interest
a hand that we cannot see guiding our behavior
Market failures such as monopolies & externalities
19
Economics is the study of...
how society manages its scarce resources.
how the earth produces its scarce resources.
the choices individual make to satisfy their wants & needs.
the choices all animals make to satisfy their wants & needs.
20
To show economic growth, the PPC shifts to the
right
inward
left
south
21
What is PPC?
Production Possibility Curve
products of production
Toliet paper
a movie
22
What is Laissez-Faire Economics?
Trade and industry controlled by private owners for profit.
Class struggle and dictatorship until a classless society
Society will be better without government in free market.
Each person is paid according to their abilities and needs.
23
The invisible hand is...
Part of that one guy from Hotel Transylvania
The overall societal benefit provided by people acting in self interest
Individuals working for the greater good causes society as a whole to grow
Only possible with government intervention and taxes
24
An inefficient point on the PPC would fall
on any line of the graph
on the next page
inside of the graph
outside of the graph
25
Define factors of production.
the goods and services produced from resources
an alternative we sacrifice when we make a decision
the most desirable alternative sacrificed
the resources used to produce all goods and services
26
Which of the following are assumptions underlying the PPC?
Prices determine the position on the PPC
All the above
Technology, population, and capital are variable
Only two goods are produced
27
Define trade-off.
the most desirable alternative given up
an alternative we sacrifice when we make a decision
having limited goods and services because items are scarce.
thinking on the margin
28
A point on the PPC means
inefficiency
extra taxes to consumers
efficiency
29
Due to the scarcity problem, all societies must answer which questions?
Societies must answer all of these questions.
What goods and services will be produced?
Who will consume the goods and services produced?
How will the goods and services be produced?
30
An economic system that combines elements of all the other basic systems.
Mixed
Traditional
Command
Market
31
Economics is the study of how society manages its ________ resources.
underutilized
undervalued
unlimited
scarce
32
Efficiency along the PPC implies...
The state of technology is maximized
To get more of a good, some of another must be given up
Goods are distributed equitably
Goods are produced quickly
33
What is an economic system
Production resource and allocation of goods within a society
Large bureaucracy required, consuming resources
Workers strive for quantity over quality
Businesses face uncertainty as a result of competition
34
What are Economic Resources?
things available to be used to produce goods and services
Raw materials supplied by nature
the production of goods and service
The people who produce goods and services
35
An example of a consumer buying a good would be:
paying for a taxi ride.
paying for a haircut.
paying a maid to clean your house.
paying for a slice of pizza.
36
Which point on the PPC would represnt a point of UNDERUTILIZATION?
Point Y
Point X
Point A
Point C
37
PPC shifts outwards due to
recession
no investment in human capital
economic growth
the decrease in unemployment
38
1. Economics can be defined as ___________.
Science of Numbers
Science of Humans
Not a science
Science of Choice
39
Why are all goods and services scarce?
Some things are needs and others are wants.
Some goods cost more than others.
Some people want to have more goods than others.
All resources are scarce.
40
Mixed economic systems are the norm globally
True
False
41
What are the three basic questions of economic systems?
What is the Opportunity Cost? Do I analyze it? What is it?
What? How? For Whom?
How Much? Where can I get that? Does it come in my size?
42
What does a bowed PPC curve indicate?
Increasing opportunity cost
Different resources
Similar goods produced
All consumers are homozygous
43
____________ is the use of resources to maximize the production of goods and services.
Overproduction
Underproduction
Efficiency
Underutilization
44
Any point outside of the PPC is considered attainable
Maybe
True
False
Sometimes
45
Economics is the study of _____ resources and _____ wants
limited, unlimited
unlimited, limited
many countries, too many
the U.S., excessive

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