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Intro to Economics Flashcards | StudBud
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Intro to Economics
Intro to Economics
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#econ #chapter1
Flashcards
26 cards
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Questions
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Answers
1
What can cause a production possibility curve to move to the right?
An epidemic kills thousands of young men and women
Thousands of people move out of the country
A new invention lowers the cost of production
The population is growing increasingly old
2
P.P. increase because workers become more skilled at using a computer. Growth is due to
global resources
production opportunity
physical capital
technology
3
A company that makes baseball caps is underutilizing its resources. What does this mean?
The company is paying its employees less than it should be.
The company is producing fewer caps than it could be.
The company's making caps instead of making t-shirts instead
The company is running more efficiently than its competitors
4
____ is the actions or activities that one person performs for another
trade-offs
goods
opportunity cost
services
5
____ is the line that shows different production possibilities for an economy.
production possibilities graph
growth
services
production possibilities frontier
6
____ is the physical objects that can be exchanged.
trade-offs
goods
services
scarcity
7
____ is land, labor, and capital
services
growth
factors of production
production possibilities frontier
8
The resources used to make all goods and services are the....
production possibilities
factors of production
opportunity cost
production trade-offs
9
The purpose of a production possibilities graph is to...
Keep an economy from having non-productive workers
depict different ways to use an economy's resources
Demonstrate how to win a war
10
The law of increasing costs means that when an economy increases the production of one item...
the cost of production goes down
the production cost will increase
the opportunity cost goes up
the cost goes up but opportunity cost goes down
11
_____ is the use of fewer resources than the economy is capable of using
production possibilities graph
factors of production
underutilization
factors of production
12
A gov. must make a decision between spending $ on a hospital or on a border security. This is a
production efficiency decision
global trade-off decision
guns or butter decision
decision at the margin
13
You buy 2 new CDs w/ your last $30 and payday is on Mon. What is your opportun. cost of the CDs
knowing you are the 1st of your friends to have these CDs
diff. between the cost to produce CDs & the price you paid
dinner and a movie w/ your friend on Saturday
$30
14
_____ is a representation of alternative ways to use an economy's resources.
trade-offs
services
production possibilities graph
efficiency
15
Automakers install robotic machinery to build cars. Now cars take 1 day to make, this growth is
human capital
technological
land and natural resources
production possibility curves
16
Which of the following lists would an economist consider to be land?
iron ore, natural gas, fertile soil, water
farm fields, tractors, pesticides, fertilizers
dams, bridges, rock quarries, oil wells
factories, office buildings, assembly lines, workers
17
Which of the following is a "guns or butter" decision?
Deciding to install an alarm system or buy new furniture
A school deciding to build a gym or renovate the auditorium
A country using steel to build fighter jets or sports cars
Whether to replace your car w/ a sports car or family Sedan
18
A gov. making a choice between increasing military spending & subsidizing wheat farmers is a...
a global trade-off
a guns or butter issue
a decision at the margin
a basic economic decision
19
What could cause a production possibilities curve to move to the right?
A baby boom 20 years ago resulted in a large population
Investors from overseas invests money in a nation's economy
An increase in the use of technology speeds up production
A nation loses land after being defeated in a war
20
What can a decision-making grid do?
help you determine some of the opp. costs for your decision
tell you the right course of action
show you every possible benefit of your decision
show you every possible consequence of your decision
21
What is a factory building an example of?
physical capital
an economic trade-off
human capital
technology
22
The lack of which of the following represents a scarcity?
enough workers to work at night because pay is to low
orange juice because the trucks carrying it are on strike
enough workers to finish 2 jobs due to a limited #of workers
grapefruit juice because very few people want to buy it
23
____ is the basic economic condition of all goods and services.
efficiency
trade-offs
shorages
scarcity
24
Production possibilities frontiers curve when they are charted on a graph because they show...
the technological level of the economy's productivity
the maximum output of goods and services
the increasing costs resulting in increasingly less output
the underutilization of resources
25
human capital includes
the equipment used by a doctor to cure a patient
a taxi driver's knowledge of the city's streets
the salary paid to an accountant
the machinery used to weave cloth
26
What does a production possibilities frontier show?
an economy that is producing but not at the maximum
scarce and less scarce resources
the maximum amount that an economy can produce
global trade-offs and costs of doing business
