Chapter Two Review

What is one reason economic models aren't used?

A point inside the curve represents inefficient production.

A point outside the curve would be possible because a factory has great workers.

What is one purpose of an economic model?

Which one is not a factor of production?

A line graph provides what to make better decisions?

Which is not part of the Circular Flow Model for the United States?

Economists use models because...

Entrepreneurship is the most important of the factors of production.

There are five factor costs economist consider.

Transfer Payments are...

Economists use models to seek to understand choices made by people and businesses.

Land is the human effort that goes into making a good.

Budget surplus is when the government spending exceeds the amount recieved in taxes.

Land includes all natural resources.

Dissaving is...

Which is a factor of production?

We will study how many examples of Circular Flow model?

There will probably be a bonus question on the test?

Another name for a tabular model is?

Financial capital is money that is lent to business firms from households.

A tabluar model and a line graph are the same thing.

Crowding Out is created by...

A model is a simplified representation of a more complex concept or item.

A point on the curve of a line graph represents productive efficiency in the use of resources.

Consumption Expenditures are the total of all goods and services purchased by

Economist use models for two purposes.

Another quote for insufficient production is...

A schedule and a tabular model are the same thing.

From a Bibical standpoint, who should be our model?

PPC stands for...

There is a fifth sector of the Circular Flow Model and it is, the ________ market.

The government purchases goods and services.

Models will be wrong if...

A tablular model has limited data