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Fundamentals of Economics Review Flashcards | StudBud
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Fundamentals of Economics Review
Fundamentals of Economics Review
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A review to go over concepts for the Unit 1 test.
Flashcards
18 cards
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Practice quiz
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Questions
18
Answers
1
You go out to eat and notice a waiter, a cook, and a dishwasher. This is an example of...
economy of scale
division of labor
shared consumption
marginal productivity
2
Which of the following is an example of an investment in human capital?
a company builds a new factory
a state builds a new highway
a person goes to college
a county hires a new tax collector
3
Which is NOT a method for allocating scarce resources?
authority
market correction
majority rule
first come, first served
4
Which points on the PPC graph represent the economy producing at it's maximum capacity?
F
C
G
A
5
Which BEST describes scarcity?
A condition where supply exceeds demand
A temporary shortage of a good or service
Unlimited wants exceeding limited resources
A unlimited demand for goods and services
6
Profits, job creation, innovation, and improving society are viewed as motivation for whom?
Government officials
Entrepreneurs
Monopolies
Day traders
7
Investing heavily in new capital goods and technology is MOST related to
Opportunity cost
Supply and demand
Economic growth
Economic freedom
8
Which of the following is NOT one of the roles of the U.S. government in our economy?
resolve negative externalities
enforce contracts
protect private property ownership rights
set prices
9
In the production of chocolate chip cookies, which represents the factor of CAPITAL?
the dough used to make the cookies
the retailer who sells the cookies
the oven used to bake the cookies
the worker who decorates the cookies
10
The economic system where decisions about what/how to produce are made by business owners...
market economy
mixed economy
traditional economy
command economy
11
"High Tech Firms Begin Producing New Generation of Computers"
What economic question is asked?
For whom to produce
How to produce
What to produce
When to produce
12
In a mixed economy, the role of the government is to...
set output quotas
decide how the four productive resources are used
make economic decisions based on the needs of the people
make rules and regulations for businesses
13
If you are a jeweler and purchase 50 pounds of gold, which factor of production is being used?
Capital goods
Entrepreneurship
Natural resources/land
Labor
14
Dan sleeps in an extra hour and misses his first class. For him it's a "rational decision"...
The cost of missing class > the benefit of sleeping in
The benefit of sleeping in > the cost of missing class
15
What is the
opportunity cost
of shifting from point B to point A?
3,000 trucks
2,000 boats
7,000 boats
7,000 trucks
16
An assembly line can increase a factory’s productivity because it allows workers to...
focus on a specific task
put in overtime hours on the job
diversify their skills
use a wide range of knowledge
17
A factory owner buys machines to help increase production. Which factor of production are they?
land/natural resources
entrepreneurship
capital goods
labor
18
Which one of the following is NOT one of the three basic economic questions?
How to produce
When to produce
What to produce
For whom to produce
