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Duplicate of Sarah's old Unit 1 Fundamentals of Economics Review Flashcards | StudBud
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Duplicate of Sarah's old Unit 1 Fundamentals of Economics Review
Duplicate of Sarah's old Unit 1 Fundamentals of Economics Review
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A review to go over concepts for the Unit 1 test.
Flashcards
39 cards
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Practice quiz
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Questions
39
Answers
1
Why is specialization so important in a business?
Allows workers to share each job equally
Allows owners to hire fewer workers and still make a profit
Allows workers to focus on one area of expertise
Allows owners to hire more workers than they really need
2
In the image what does Y represent?
An inefficient use of resources
The most efficient use of resources
Opportunity Costs
An impossible production option at the present time
3
Rational decisions are made when
Costs are greater than Profits
Marginal benefit is equal to or greater than marginal cost
Marginal cost is equal to or greater than marginal benefit
Supply is greater than Demand
4
Which of the following would NOT cause the PPC to move from PP to P'P'?
Increase in technology
Increased Labor skills and Education
Increased Governnment Regulations
Discovery of new resources
5
The fundamental problem of economics is:
Unlimited wants and needs in the face of scarce resources
equitable distribution of money in order to reduce poverty
how to establish a democratic political framework
establishing an equitable system of taxation
6
Which of the following is a Public Good?
Georgia State HWY 400
Six Flags Amusement Park
Delta Airlines
Dawsonville Outlet Mall
7
Making the best use of resources has to do with which economic goal?
Economic Freedom
Economic Security
Economic Equity
Economic Efficiency
8
Why do we have opportunity costs?
Because there is a cost with everything we do in life
We have limited wants but unlimited productive resources
We have unlimited wants but limited productive resources
Marginal costs are greater than marginal benefits
9
In Amy and Bob's Bakery, they both bake cakes and then decorate them. What is the best way to improve efficiency?
Amy bakes her cakes and decorates Bobs, Bob bakes cakes and decorates Amy's
Amy and Bob reduce the number of cakes they can bake and decorate
Amy and Bob bake cakes together, and Amy and Bob decorate cakes together
Amy bakes all the cakes, and Bob decorates all the cakes
10
In the production of chocolate chip cookies, which represents the factor of Physical CAPITAL?
the worker who decorates the cookies
the property where the factory is located
the retailer who sells the cookies
the oven used to bake the cookies
11
What does moving point B to C represent?
A gain of 30 tons of capital goods
A gain of 30 tons of consumer goods
A loss of 30 tons of consumer goods
A loss of 30 tons of capital goods
12
In a market economy who answers the question of what to produce?
Various government departments build whats necessary
Traditions and customs
Governments
Whatever goods and services consumers demand are what producers produce.
13
What is the greatest disadvantage of someone moving from a command to market economy?
Loss of Consumer Sovereignty
Loss of Economic Security
Loss of Economic Freedom
Loss of Economic Efficience
14
What is the second best alternative that we give up whenever we make choices
Marginal Revenue
Opportunity Cost
Trade offs
Opportunity Gained
15
Any goods that are made by humans and then used to create other goods and services are called
production
physical capital
labor
services
16
You go out to eat and notice a waiter, a cook, and a dishwasher. This is an example of...
Production Possibilities
marginal productivity
economy of scale
specialization
17
You can find the advantages of more freedom and more efficiency for producers and consumers in which type of economy?
Traditional Economy
Market Economy
Command Economy
18
In the image what does X represent?
Inefficiency
Impossible Production
Opportunity Costs
Efficiency
19
How our MOST public goods and servies paid for in the United States?
consumers pay corporations to deliver public goods and services
private charities collect donations from individual and businesses
the government collects fees fromt hose woh use the goods and services
the government collects taxes from individuals and buinesses
20
Which of these is NOT an incentive for entrepreneurs to take the risk of starting a business?
Creating Jobs
Government Regulations
Profit
improving society
21
Maria decides to buy $10 of art pencils instead of a book. What is her opportunity costs?
the satisfaction she will receive from drawing
the satisfaction she would receive from reading the book
The time she spent shopping for books
The time she spent drawing with the pencils
22
The feature that distinguishes the U.S. economy from the free market model is
private ownership of the factors of production
self interest and incentives
limited government involvement
contractual relationships between businesses and individuals
23
Which of the following is an example of capital investment for a manufactoring company?
buying ad space in magazines
hiring workers for its factories
buying more land to build on in the future
buying new machines for production
24
What is one characteristic of a Command economy?
Partial government control of resources
Full government control of resources
Economic Freedom is emphasized
Little government control of resources
25
If a bridge needs to be built in a Market economy, who will pay for the bridge?
The state government will allocate its taxes to pay
The city government will decide
The federal government will raise taxes to pay for it
The owners of the property
26
Which of the following is an example of an investment in human capital?
a company buys a new piece of equipment
a state builds a new highway
a worker gets training on how to operate a computer
a county hires a new tax collector
27
What is an economic example of Land?
cashier, cook, and manager
buildings, offices, and barns
factories, trucks, and machines
iron ore, cotton, water, trees
28
Joe works as a secretary at a medical office. Which of the following BEST describes his role?
Labor
Office Staff
Consumer
Entreprenuer
29
Productivity goes up whenever...
the government raises taxes
there is an increase in minimum wage
more resources are used
the same output is produced using fewer inputs
30
Which of the following is a primary role of the government in the U.S. economy?
It owns the majority of land and capital
It protects property rights
It guarantees jobs for all citizens
It guarntees equal outcomes for all
31
Which one of the following is NOT one of the three basic economic questions?
When to produce
For whom to produce
What to produce
How to produce
32
Why is buying a car an example of Voluntary Exchange?
Because the car company earns a profit and you have a debt
Because both parties gain from the exchange
Because you have limited resources and choices in car types
Because the car company must sell car for a certain price
33
You are an entrepreneur with an innovative idea for a new business. In which economy would you have the most opportunity
Command
Mixed Economy
Traditional
Free Market
34
When a grocery store offers a sale on candy bars, how do consumers usually react?
By purchasing less candy bars
By purchasing ice-cream and cereal instead of candy bars
By purchasing more candy bars
By shopping in a different store that doesn't have the special offer
35
An assembly line can increase a factory’s productivity because it allows workers to...
use a wide range of knowledge
specialize or work on a specific task
put in overtime hours on the job
diversify their skills
36
What is the best way to measure productivity?
comparing the total inputs used to the outputs produced
how fast employees are working
adding up the total output of a product
adding up the total inputs used to make a product
37
Which of the following are strategies for allocating scare resources?
contests and sharing
All of these are ways to allocate resources: majority rule, lottery, etc.
lottery system
majority rule
38
A rational economic decision is best made when marginial benefits exceed the marginal cost.
True
False
39
According to Economists, Consumers, Businesses, and Governments respond to incentives in unpredictable ways
True
False
