Unit 8: Economic Basics

Question 1

The ability to produce more goods/services than competitors using the same amount of resources

Accepted Answer

Absolute Advantage

Question 2

This can refer to either a want or need, but specifically the overall desire to own a something

Accepted Answer

Demand

Question 3

The "invisible hand" in the market....

Accepted Answer

coordinates trade

Question 4

the ability to make a specific product more efficiently than something else

Accepted Answer

Comparative Advantage

Question 5

________ is the most efficient form of economy and results in fewer shortages and surpluses.

Accepted Answer

Market Economy

Question 6

Additional satisfaction that one receives from consuming an additional unit of a good/service

Accepted Answer

Marginal Benefit

Question 7

Adam Smith wrote the book entitled __________

Accepted Answer

The Wealth of Nations

Question 8

Compared to competitors, having a lower opportunity cost producing something refers to

Accepted Answer

Comparative Advantage

Question 9

This economic philosopher theorized the ideas that became known as communism.

Accepted Answer

Karl Marx

Question 10

What occurred at a great scale in post-WWII Germany resulting in the cost of products going up

Accepted Answer

Inflation

Question 11

People tend to want it all. This makes which of the following very important?

Accepted Answer

Scarcity

Question 12

Most national economies would be considered which of the following?

Accepted Answer

Mixed

Question 13

Resources are scarce, so....

Accepted Answer

people must make tradeoff's

Question 14

the cost added by producing one additional unit of a product or service is .....

Accepted Answer

Marginal Cost

Question 15

This term refers to the ability to do something with great skill and efficiency

Accepted Answer

Specialization

Question 16

Why do some countries have a comparative advantage in producing certain raw materials?

Accepted Answer

They're helped by particular natural resources and geography

Question 17

Which of the following is true of a 'true' market economy?

Accepted Answer

The government would not interfere in the economy or trade

Question 18

The time, resources, and alternatives given up in order to get or do something refer to what?

Accepted Answer

Opportunity Cost

Question 19

This law refers to distributing resources and regulating the market in the most efficient way

Accepted Answer

The Law of Supply and Demand

Question 20

The factors of production include all the following except...

Accepted Answer

Money

Questions 20