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Topic 1 - Introduction to economics review Flashcards | StudBud
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Topic 1 - Introduction to economics review
Topic 1 - Introduction to economics review
20 terms
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Flashcards
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1
What is a consumer good?
Goods that encourage consumption
Goods that are used in producing other goods
Products bought for the consumption of consumers
Goods that are consumed by government
2
Which of the following are leakages of income in an economy?
Savings, Government expenditure, exports
Savings, Government expenditure, Imports
Savings, Taxation, Imports
Investment, Government expenditure, Exports
3
A factory is a capital good
True
False
4
The return (income) for the use of capital is...
Profit
Wages
Rent
Interest
5
The return (income) for the use of entrepreneurship is...
Wages
Interest
Rent
Profit
6
Which best represents the economic problem?
Limited resources and limited wants
Unlimited resources and unlimited wants
Unlimited resources and limited wants
Limited resources and unlimited wants
7
A smartphone is a capital good
True
False
8
Which would best characterise the stage of the cycle circled red?
Increasing employment
Increasing business profits
Increasing quality of life
Increasing unemployment
9
Identify the stage of the business cycle
Expansion (Upswing)
Contraction (Downswing)
Trough
Peak
10
What are total leakages?
248
185
239
262
11
What is an opportunity cost?
The loss of other alternatives when a choice is made
The environmental cost of a choice
The loss of resources used when a choice is made
The financial cost of a choice
12
Which would best represent the opportunity cost for the following hypothetical situation?
Angry teachers and parents
$20
Not going to school the following day
3 hours of exam study
13
What are the four factors of production?
Rent, wages, interest, profit
Natural, labour, profit, entrepreneurship
Earth, labour, machinery, human skill
Natural, labour, capital, entrepreneurship
14
Is this economy: contracting, expanding or in equilibrium?
Equilibrium
Contracting
Expanding
15
The return (income) for the use of labour is...
Interest
Rent
Profit
Wages
16
What is a capital good?
Goods that encourage consumption
Products bought for the consumption of consumers
Goods that are consumed by government
Goods that are used in producing other goods
17
Identify the stage of the business cycle circled red
Trough
Peak
Expansion (Upswing)
Contraction (Downswing)
18
What is the opportunity cost of moving from Point A to Point B?
20 units of manufactured goods
10 units of agricultural goods
10 units of manufactured goods
20 units of agricultural goods
19
Which of the following are injections of income in an economy?
Investment, Government expenditure, Exports
Savings, Taxation, Imports
Savings, Government expenditure, exports
Investment, Government expenditure, Imports
20
Identify the stage of the business cycle
Contraction (Downswing)
Peak
Trough
Expansion (Upswing)
