What is the opportunity cost of saving money to purchase a car?

The money could be used to go on vacation

Productive resources are bought and sold

What MIGHT cause the line (frontier) on this possibilities graph to move to the left?

A shortage of needed raw materials

In economics, “equilibrium price” is a situation in which

there is neither shortage nor surplus of goods

Mr. Lee chooses to open a store instead of renting his building. What is his opportunity cost?

opportunity to rent to another tenant

The BEST explanation of why there will always be scarcity is because

While peoples’ wants are unlimited resources are limited

What is "money as a medium of exchange?"

Money can be traded for goods and services

The purpose of a production possibilities graph is to show

combination uses of limited resources

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ECON EOC Review 1

20 termsStudBud Administration288 plays

Part 1 of Econ EOC review

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Questions 20

Answers

1
What is the opportunity cost of saving money to purchase a car?
The money could be used to go on vacation
The money you could have earned at a job
The cost of working hard to save money
The cost of insurance, gas, andmaintenance
2
In the graph, what happened to the EQ price when the supply curve moved from S1 to S2?
EQ price increased
It indicated a decrease in demand
It did not change
EQ price decreased
3
Mr. Green, a bakery owner, purchased a new oven. The oven represents which productive resource?
entrepreneurship
labor
land
capital
4
Incentives for an entrepreneur to start a business would MOST LIKELY be
to discover a new patent
to risk financial failure
to make a profit
to create a new social benefit
5
Studying for 1 more hour results in 1 hour less of sleep. This decision would be engaging in
market transactions
trade negotiations
marginal analysis
bartering
6
In the factor market
Individuals provide labor and buy goods
Producers sell goods and services to consumers
Individuals buy productive resources and provide labor
Productive resources are bought and sold
7
What MIGHT cause the line (frontier) on this possibilities graph to move to the left?
Increased demand for basketballs
new whoopee cushions technology
An increase in the number of workers
A shortage of needed raw materials
8
If marginally, the cost begins to outweigh the benefits
You stop!
Do less!
Who cares?
You can't have too much of a good thing!
9
In economics, “equilibrium price” is a situation in which
there is neither shortage nor surplus of goods
the quantity supplied is greater than the quantity demanded
the Quantity demanded is greater than quantity supplied
a partial temporary reduction in prices occurs
10
Mr. Lee chooses to open a store instead of renting his building. What is his opportunity cost?
Profit from his own store
opportunity to rent to another tenant
opportunity to run his own business
the property tax he would pay
11
The study of scarcity and choices is
economics
allocation
specialization
deregulation
12
Choices: taco, hamburger, or salad. You do not like tacos. You choose the salad. OC is?
taco
salad
nothing, it was free.
hamburger
13
The BEST explanation of why there will always be scarcity is because
Governments create scarcity to keep people wanting more
While peoples’ wants are unlimited resources are limited
Natural disasters create frequent shortages
People and their tools are inefficient
14
Choosing among economic alternatives is
Interdependence
Scarcity
Labor allocation
Trade-off
15
Preliminary research to gain knowledge about opening a business would increase
labor
human capital
physical capital
allocation of resources
16
What is "money as a medium of exchange?"
Money is a measure of a product’s value
Money can be accumulated as a form of wealth
money is a measure of societal status
Money can be traded for goods and services
17
The purpose of a production possibilities graph is to show
The number of workers required for a specific task
How supply and demand determine price
Whether the supply of goods is elastic or not
combination uses of limited resources
18
Law of demand: as the price of a good rises, demand __, and as the price falls, demand __.
falls, falls
rises, falls
rises, rises
falls, rises
19
Where do individuals spend the income they earn?
capital market
factor market
product market
individual household market
20
Land, labor, capital, and entrepreneurship are the
Factors of production
Basis of employment
Results of supply and demand
Results of production

ECON EOC Review 1 Flashcards | StudBud