An efficient economy is one in that ...

Uses its resources with very little waste.

What does the Production Possibilities Frontier tell us?

It shows the possible outcomes when two goods are produced.

In a market economy ...

prices reflect scarcity and wants

Why would the richest person in the world experience scarcity?

Because productive resources are limited.

Which choice is the correct example of opportunity cost?

Mr. King decides to buy a mule instead of new clothes.

What does Point H represent?

An impossible level of production.

How do we define opportunity cost?

the value of the next best alternative that is given up

Human capital is defined as:

the knowledge and skills that a labor resource possesses

Mr. Goodwrench, an auto mechanic, requires capital resources. These are:

a garage, tools and a telephone

Which is the best definition of scarcity?

unlimited wants outpace limited resources

The study of economics is concerned with:

making choices to use scarce resources efficiently

Of the three fundamental questions of economics, which is one of these options?

how to produce goods and services

What is the best characteristic of a mixed economy?

Government sets a minimum wage for private business.

Consumer sovereignty is defined as ...

consumers choose which products will be produced

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Duplicate of Economics Fundamentals

28 termsStudBud Administration

This is a Quiz to test our knowledge of the foundational ideas of #economics.

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Questions 28

Answers

1
An efficient economy is one in that ...
Gets more work done in less time.
Makes a high profits for each product.
Has low levels of unemployment.
Uses its resources with very little waste.
2
Profit motive is defined as:
an incentive to make money
the desire to work
a business's desire to spend money
how a business creates income
3
What does the Production Possibilities Frontier tell us?
It maps trade between two nations.
It shows the possible outcomes when two goods are produced.
It predicts when unemployment is rising.
It tells us when we are in recession.
4
In a market economy ...
prices reflect scarcity and wants
governments intervene
governments interfere
governments plan production
5
Two ways of allocating scarce resources are:
supply and demand, and contest
supply and demand, and leverage
command and control
authority and consensus
6
When one decision is made, the next-best alternative is:
comparative advantage
comparative disadvantage
additive resource
opportunity cost
7
The term "land" in factors of production means ...
dirt
real estate
unfinished goods
natural resources
8
Which economic system has a very low unemployment rate?
planned
market
mixed
command
9
The resources used to make all goods and services are called the...
production tradeoffs
natural resources
the production frontier
factors of production
10
Why would the richest person in the world experience scarcity?
Because workers wages keep going up.
Rich people do not experience scarcity.
Because prices are too high.
Because productive resources are limited.
11
Which choice is the correct example of opportunity cost?
You make a toy from leftover popsicle sticks.
Mr. King decides to buy a mule instead of new clothes.
You buy a new jacket with birthday money.
Teachers take on the extra duty of driving buses.
12
What does Point H represent?
Nothing
Our long-term hopes and dreams.
An impossible level of production.
The maximum amount we can produce right now.
13
What is the opportunity cost if we move from Point C to Point B?
100,000 pizzas
both pizzas and robots
300,000 pizzas
7,000 robots
14
How do we define opportunity cost?
all other alternatives you give up to do what you want
spending money on what you want
marginal cost for non-fraudulent exchanges
the value of the next best alternative that is given up
15
Human capital is defined as:
how much money someone earns
the knowledge and skills that a labor resource possesses
the number of people in the workforce
hiring new people
16
Mr. Goodwrench, an auto mechanic, requires capital resources. These are:
customers, tools and land
money, a garage and employees
a garage, lenders and customers
a garage, tools and a telephone
17
Which choice is a capital factor of production?
Ms. Payne
air conditioning
a computer
steel
18
For a factor of production to be scarce, it must be...
rare and expensive
unlimited and cheap
unevenly allocated
limited and desirable
19
The outwardly bowed shape of the production possibilities curve tells us:
that growth is unsustainable
how opportunity costs increase
that production is inefficient
that marginal costs are expensive
20
Which is the best definition of scarcity?
the allocation of goods and services
a shortage of goods
unlimited wants outpace limited resources
not having enough money to buy stuff
21
The study of economics is concerned with:
making sure businesses succeed
customs and traditions
efficiently allocating society's products
making choices to use scarce resources efficiently
22
Of the three fundamental questions of economics, which is one of these options?
how to produce goods and services
how goods are allocated
how much goods and services will cost
who will receive goods and services
23
What is the best characteristic of a mixed economy?
Scarcity is experienced by all.
Government sets a minimum wage for private business.
All factories produce for the government's needs.
Farmers engage in a barter economy.
24
An economic system formed around habits, customs and religion is ...
archaic system
primitive system
natural system
traditional system
25
The fundamental economic problem faced by all societies is ...
unemployment
poverty
scarcity
inequality
26
In a command economy, the key driver of the economy is...
entrepreneurs
consumers
businesses
the government
27
Consumer sovereignty is defined as ...
producers create demand for products
producers advertise goods and services
consumers choose which products will be produced
consumers determine how resources are allocated
28
Which choice from factors of production is an example of LABOR?
goods and services that are produced
learning new skills
sweat produced when working
mental activity when producing

Duplicate of Economics Fundamentals Flashcards | StudBud