BUSD 1002 Chapter 1 Flashcards

1

What is a factor of production?

Inflation
Land
Trade
Opportunity cost

2

Which is a microeconomic concept?

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

3

What is a benefit of specialization?

Higher costs
Higher output
Less variety
Less efficiency

4

Which economy is based on tradition?

Co-operative Economies
Command Economies
Customary Economies
Competitive Economies

5

What does PPC stand for?

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

6

What is the core problem of economics?

Overproduction
Inflation
Economic growth
Scarcity

7

What is the main focus of macroeconomics?

National trends
Production costs
Individual markets
Consumer behavior

8

True or false: Opportunity cost is always zero.

False
True

9

What do economic systems organize?

Production and distribution
Only distribution
Consumer preferences
Only production

10

True or false: Microeconomics focuses on the whole economy.

False
True

11

True or false: Trade leads to lower prices.

False
True

12

True or false: Economics studies unlimited resources.

False
True

13

True or false: Scarcity means resources are unlimited.

True
False

14

Which best describes opportunity cost?

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

15

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

False
True

16

What is the role of entrepreneurship?

Combine resources
Manage labor
Produce goods
Control capital

17

Which is a characteristic of allocative efficiency?

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

BUSD 1002 Chapter 1

Questions 17

BUSD 1002 Chapter 1

Questions 17