What are the two economic assumptions of Economics

People are Rational and People are self-interested

Define Opportunity Cost

The Next Best Alternative Forgone

What is the basic economic problem?

Unlimited wants, Limited resources

How can campanies shift their Production Possibilities Curve?

Investing in The Factors of Production

The choices we have to make becasue of scarcity.

Within the circular flow, there are two markets. These markets are the

product market & resource market.

In the circular flow model, the resource markets (Factor Markets) are the markets in which

land, labor, & capital are bought & sold

What are the four factors of production?

Land, Labor, capital, Entrepreneurship

what is an economic systems?

The ways in which society answers the 3 economic questions.

nonexcludable and nonrival in consumption.

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Unit 1 Fundamentals

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Questions 15

Answers

1
What are the two economic assumptions of Economics
People do what is best for society but don't make rational choices
People are Rational and People are self-interested
People are rational and look out for other people first.
People are greedy and self-interested
2
Define Opportunity Cost
The Cost of running buisness
The Next Best Alternative Forgone
The time given up for the 3rd Best Alternative
IDK
3
What is the basic economic problem?
Limited wants, Unlimited resources
Unlimited supply, Limited demand
Unlimited wants, Limited resources
Limited supply, unlimited demand
4
How can campanies shift their Production Possibilities Curve?
Buying Consumer Goods
The 7 economic goals
Trade offs
Investing in The Factors of Production
5
What does the Production Possibilities Frontier graph demonstrate?
Economic Cost
Opportunity Cost
Actual Cost
Production Cost
6
what is a trade off
Were everything is free and you live forever
buying food
The choices we have to make becasue of scarcity.
The benefits of working
7
Within the circular flow, there are two markets. These markets are the
market for the government & the market for everyone else.
market for tangibles & the market for intangibles.
product market & resource market.
market for business to sell goods
8
I can read and interpret a production possibilities graph!
Yes!
No, but I will be able to by tomorrow
No :(
A what?
9
In the circular flow model, the resource markets (Factor Markets) are the markets in which
land, labor, & capital are bought & sold
consumption goods & services are bought & sold.
governments impose all their taxes.
government goods & services are provided.
10
What are the four factors of production?
Water, Air, Earth, Fire
Land, Liberty, Capital Entertainment
Land, Labor, Capital, Entertainment
Land, Labor, capital, Entrepreneurship
11
Economic systems that are "hands off" are known as...
communism
Market economy
Mixed economy
Planned economy
12
what is an economic systems?
The ways in which society answers the 3 economic questions.
A system on private ownership trade between buyers sellers.
the ability to produce more of a given amount of resources.
A system where power distribution is included.
13
Public goods are
excludable and nonrival in consumption.
nonexcludable and rival in consumption.
excludable and rival in consumption.
nonexcludable and nonrival in consumption.
14
Command economic system is the government controlling the economic system.
False
True
15
What does the circular flow model show us?
all of the above
The flow of goods and services around the economy
The relationships between firms, and households
The flow of money around the economy

Unit 1 Fundamentals Flashcards | StudBud