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Intro to Economics Review Flashcards | StudBud
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Intro to Economics Review
Intro to Economics Review
30 terms
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PPF, Opportunity cost, Scarcity, Circular flow
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
The lack of which of the following represents scarcity?
Grapefruit juice because very few people want to buy it
Oil in the world today
Orange juice when trucks carrying it are on strike
Enough workers to work night shift because the pay is low
2
Firm can produce T-shirts or sweatshirts. Opportunity cost of producing T-shirts is measured by
Variable cost of T-shirt production
Number of sweatshirts the firm chose not to produce
Fixed cost of T-shirt production
Total cost of T-shirt production
3
Which statement best describes the role of government within the circular flow model?
sell labor to businesses and pay taxes
collect taxes from individuals and businesses
sell their labor to households
pay wages to businesses
4
Which of the following is NOT a characteristic of capitalism or market systems?
Competition
Private Property
Profit motive
Central planning
5
Which statement best describes the role of households within the circular flow model?
They produce goods and services to sell to consumers
They pay wages to government
They collect taxes from businesses and individuals
They sell labor to businesses and pay taxes to government
6
The resources used to make all goods and services are the
factors of production
opportunity cost
production trade offs
production possibilities
7
Mary studied for Economics She could have played the piano. Her opportunity cost of studying is
making brownies
playing the piano
making brownies and playing the piano
the amount of time it took to study
8
Which statement best describes the role of businesses within the circular flow model?
produce goods and services to sell to consumers
sell labor to businesses an pay taxes
pay wages to the government
collect taxes from businesses and individuals
9
What do economists mean when they say, “There is no such thing as a free lunch.”?
businesses that advertise free things are lying
the cafeteria charges too much
learning economics is delicious
everything has a cost
10
Which of the following is the best definition for economics?
how to satisfy limited wants with unlimited resources
how to satisfy unlimited wants with limited resources
the study of how to complicate simple situations with math
the study of economic indicators
11
Which point is unattainable on the PPC
A. On the Curve
G. Above the Curve
F. Below the Curve
D. On the Curve
12
Which of the following statements is TRUE about the Production Possibilities Curve?
Every point along the curve is inefficient
increasing opportunity cost is why the PPC is straight line
Without trade, a point above the PPC is unattainable.
Every point inside or to the left of the curve is efficient.
13
Which of the following is NOT a factor of production?
Money
Labor
Capital
Land
14
In a command economy, the means of production are owned by
government
the wealthy
private citizens
corporate groups
15
To move along the curve from point B to C requires
change in technology
increase in number of workers
an act of god
decreasing the output of capital goods
16
Production possibilities curve illustrates the____ facing an economy that___ only two goods.
shortage; produces
prices; sells
trade-offs; consumes
trade-offs; produces
17
College graduates are a segment of which factor of production?
Profit
Goods
Land
Labor
18
What is the difference between microeconomics and macroeconomics?
Both B and C
Macro studies the economy as a whole.
Nothing
Micro is the study of economics at the individual level
19
Which of the following is an example of a command feature of the U.S. economy?
There is no minimum wage
There are no food safety standards for restaurants
Government sets no regulations for the environment
Government provides health care for the elderly and needy
20
Which of the following scenarios would cause the PPC to shift inward or to the left?
A pizzeria begins taking orders online
Auto maker wants to produce trucks at the expense of cars.
A fire destroys a factory building and most of the machinery
A farmer acquires new land.
21
In a pure market economic system, who makes decisions about what to produce?
Individuals
Churches
Government
Tradition
22
Which of the following are key economic questions?
For whom?
How to produce?
All of the above
What to produce?
23
The cost of a trade off is known as its . . .
opportunity cost
explicit cost
future cost
real cost
24
Which of these most directly contributes to the problem of economic scarcity?
People must earn money to provide for their families.
People have to pay taxes to governments for services.
People must take risks to create and improve technology.
People have unlimited wants for goods and services.
25
Nike’s shoe factory is a segment of which factor of production?
Capital
Entrepreneurship
Labor
Land
26
After Tod's first week of work at Timmy Chan and gets a pay check. This transaction takes place
in the resource/factor market
chicken wings!
at the bank
in the product market (goods & services)
27
Which point indicates that resources are NOT fully utilized?
A. On the Curve
B. On the Curve
G. Above the Curve
F. Below the Curve
28
Which best completes the list below? Labor, Natural resources/land,Capital, and _______
regulation
Entrepreneurship
Supply
Demand
29
Tim saved $500 to buy a used car. He spent it on a trip and music. What is the opportunity cost
used car
music downloads
$100
the trip
30
Tammy would like to purchase a new pair of shoes. This transaction would take place in . . .
the product market (goods & services)
shoe palace
HEB market
the resource/factors market
