BUSD 1002 Chapter 1 Flashcards

1

Which best describes opportunity cost?

Money paid for a good
Next best alternative foregone
Time taken to decide
Benefit from all alternatives

2

What is a factor of production?

Inflation
Opportunity cost
Trade
Land

3

True or false: Economics studies unlimited resources.

False
True

4

Which is a microeconomic concept?

Inflation rate
Demand for a specific product
National unemployment rate
Gross Domestic Product

5

What is a benefit of specialization?

Higher costs
Less efficiency
Less variety
Higher output

6

What is the role of entrepreneurship?

Manage labor
Produce goods
Control capital
Combine resources

7

Which is a characteristic of allocative efficiency?

Lowest production cost
Maximizing output
High opportunity cost
Right mix of goods

8

True or false: The law of increasing opportunity cost is linear.

True
False

9

True or false: Scarcity means resources are unlimited.

False
True

10

True or false: Microeconomics focuses on the whole economy.

True
False

11

True or false: Trade leads to lower prices.

False
True

12

True or false: Opportunity cost is always zero.

False
True

13

What do economic systems organize?

Consumer preferences
Production and distribution
Only distribution
Only production

14

What is the main focus of macroeconomics?

Consumer behavior
Production costs
National trends
Individual markets

15

What is the core problem of economics?

Economic growth
Scarcity
Overproduction
Inflation

16

Which economy is based on tradition?

Competitive Economies
Command Economies
Customary Economies
Co-operative Economies

17

What does PPC stand for?

Production Price Curve
Productive Price Control
Potential Production Capacity
Production Possibilities Curve

BUSD 1002 Chapter 1

Questions 17

BUSD 1002 Chapter 1

Questions 17