Unit 1: Thinking Like an Economist

The desires and needs of the consumer determines what producers make is known as:

Process of weighing choices is defined as:

Which of the following is NOT a basic economic question?

Employment in service occupations refers to:

Sum of people's skills, abilities, health, and motivation.

Movement along the production possibilities frontier illustrates which economic concept?

Product intended for final use by the public rather than businesses

Any combination/point below the production possibilities frontier illustrates

Broad social goal of U.S. economy- right to choose your own occupation and use of your money

A combination of goods and services outside/ (above) the PPF illustrates:

In capitalism, the motivation for starting and operating a business is to:

Market where resources are bought and sold

Which of the following is an investment in human capital?

Tools, equipment, and factories used in the production of goods and services

Specialization is a good idea because it increases efficiency and thus brings down cost.

Any point/combination on the production possibilities frontier illustrates

Capitalism is most closely associated with what economic system?

What do economic systems do?

A good or services capacity to provide satisfaction or usefullness is known as

Economic System- profit incentive, lots of choices in goods and services, private property

Voluntary exchange allows consumers to choose where they want to spend their money

Economic System- no role confusion, basic needs are met, predictable, low standard of living, bartering

Economic System- no private property, government answers the three basic economic questions

Assignment of tasks so that each worker performs fewer functions more frequently

A productive resource not created by human effort (natural resources)

The basic problem in Economics and why people study it is due to

The act of buyers and sellers freely and willingly engaging in market transactions:

Examples of which productive resources- Hammer, copy machine, saw, and factories

oil and water would be an example of which type of factors of production/productive resources

Risk taking individuals in search of profits

Which of the following examples best demonstrates opportunity cost?

A market economy has an advantage over a traditional economy in that a market economy

The situation of limited resources and unlimited needs and wants creates

Broad Social Goal- fairness, illegal to discriminate based on age, race, sex, or disability

Which of the following examples would shift the PPF upwards- (illustrating economic growth)

Free market system where the government has some involvement in the economy

Which group of people ultimately determine the products in a free enterprise economy?