What trend does the original ppc curve (red) show?

As more t-shirts are made, less jeans are made.

Which of the following would be part of the flow indicated by the arrow labeled “b”?

smoke alarms for senators’ offices

Which of the following is characteristic of traditional economies?

They revolve around the family unit..

A decision is made at the margin when each alternative considers

cost and benefit ranked in progressive units.

Why are free market economies able to grow?

Competition encourages innovation.

What is the production possibilities frontier or curve?

a line showing how much is made so resources are best used

Each society answers the three basic economic questions based on

its unique combination of values and goals.

The economic concept of guns or butter means that

gov't decides to make more/less military/consumer goods.

Which of the following best describes the economy of the United States?

mixed, but more like a free market

Human capital includes

the knowledge a taxi driver has of the city streets.

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Unit 1 Principles of Economics

25 termsStudBud Administration240 plays

Check your knowledge of key concepts from chapter 1, 2, and 8.

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Questions 25

Answers

1
Policies that reduce the risk from economic harms such as job loss target the economic goal of
security
stability
equity
freedom
2
What “invisible hand” directs the free market?
competition and self-interest
specialization
circular flow
incentives and efficiency
3
If 30 million pairs of jeans are made(red curve), how many t-shirts can be made?
0
60
40
20
4
What trend does the original ppc curve (red) show?
As more t-shirts are made, less jeans are made.
As more t-shirts are made, more jeans are made.
As the number of t-shirts decreases, jeans decrease as well.
The number of t-shirts doesn't impact jean production.
5
Which of the following would NOT cause the PPC to shift to the right?
increase in population
technology
increased human capital
unemployment
6
Which type of economic system does this diagram best illustrate?
mixed economy
free market economy
traditional economy
command economy
7
All goods and services are scarce because
greedy people want too many goods.
things are either needs or wants.
some goods cost more than others.
resources are limited.
8
Which of the following would be part of the flow indicated by the arrow labeled “b”?
smoke alarms for senators’ offices
rent for a leased building
Secret Service salaries
import taxes paid by foreign firms
9
The law of increasing costs means that when an economy increases the production of one item the
actual cost of making the item goes down.
actual cost goes up but the opportunity cost goes down.
opportunity cost goes up.
production costs will increase also.
10
Which of the following is characteristic of traditional economies?
They encourage change.
They revolve around the family unit..
They have a high standard of living
They are usually based on industry.
11
An economy that is producing the maximum amount of goods and services is considered
growing.
underutilized.
trading off.
efficient.
12
Which country is the free market most dominant?
Canada
U.S.
Hong Kong
UK
13
A decision is made at the margin when each alternative considers
cost and benefit ranked in progressive units.
what the “all or nothing” alternative will be.
where the most costly alternative will be.
a different trade-off than the others.
14
Society's economic goals include all of the following except
equity
growth
justice
freedom
15
The government places a tax on every gallon of gas sold to pay for roads. The goal targeted is
freedom
growth
efficiency
equity
16
Which country is transitioning from centrally planned to more free market characteristics?
China
Mexico
North Korea
Russia
17
Why are free market economies able to grow?
Competition encourages innovation.
Consumers can buy all needed goods.
Firms keep producing incentives.
Everyone acts in their own interest.
18
What is the production possibilities frontier or curve?
a line showing how resources can best be used in the future
a line that shows the only way resources can be used
a line showing how much is made so resources are best used
a line that shows when resources are underutilized
19
You work in a store. Where in the diagram does your paycheck from the store belong?
product market: monetary flow
product market: physical flow
factor market: monetary flow
factor market: physical flow
20
A factory building is an example of which factor of production?
physical capital
land
human capital
labor
21
Each society answers the three basic economic questions based on
the number of factor payments.
the desire to achieve economic freedom.
its unique combination of values and goals.
its degree of economic growth.
22
The economic concept of guns or butter means that
a company must decide whether to manufacture guns or butter.
gov't buys unlimited military/ consumer goods if it is rich.
a person can spend money on either sports equipment or food.
gov't decides to make more/less military/consumer goods.
23
Which of the following best describes the economy of the United States?
centrally planned
mixed, but more centrally planned
free market
mixed, but more like a free market
24
Human capital includes
the machinery run by a seamstress to weave cloth.
the equipment used by a doctor to cure a patient.
the salary paid to an accountant.
the knowledge a taxi driver has of the city streets.
25
In what kind of an economy does the government make all the decisions?
centrally planned
laissez faire
mixed
free enterprise

Unit 1 Principles of Economics Flashcards | StudBud