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Economics and Capitalism basics Flashcards | StudBud
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Economics and Capitalism basics
Economics and Capitalism basics
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Answers
1
Macro or Micro: How many of a given product you should buy
Macroeconomics
Microeconomics
2
An opportunity cost is...
limited resources but unlimited wants.
What it costs to purchase a good or service
What you give up when you choose something
The chance to spend money
3
An economy where businesses are privately owned and the owners are trying to pursue profit is called
Capitalism
Socialism
Marxism
Communism
4
Macro or Micro: How much is the U.S. Dollar worth?
Microeconomics
Macroeconomics
5
Goods and services are
the opposite of supply and demand
The two choices we have when evaluating opportunity cost.
ways to invest your money
Anything produced and sold to consumers
6
Which of the following is an example of "land" as one of the 4 factors of production?
The natural resources used to produce a good or a service
The physical equipment it takes for a business.
The people doing the work in a business.
A person starting a business to provide a good or service
7
Which best describes Adam Smith's theory of the invisible hand?
Capitalism is the most effective economic system.
The free market will make sure no individuals do not have their needs met.
People keep their interests secret to maximize profit
People seeking their own interests will benefit all of society
8
Which of these is the idea that we have limited resources with which to satisfy unlimited wants?
Scarcity
Capitalism
Services
Goods
9
Macro or Micro: What product a business should produce
Macroeconomics
Microeconomics
10
Which of the following is an example of "labor" as one of the 4 factors of production?
A person starting a business to provide a good or service
The physical equipment it takes for a business.
The people doing the work in a business.
The natural resources used to produce a good or a service
11
Which is the best description of economics?
The study of businesses and the processes they use to make money
The study of money and trading
The choices people make to satisfy unlimited wants with limited resources
The ways in which we buy goods and services
12
Almost every country in the world has this type of economic system.
Capitalist economy
Mixed Economy
Command economy
Market Economy
13
According to Adam Smith, what was the #1 thing that increases produciton?
Opportunity Costs
The invisible hand
Division of Labor
Government intervention
14
Macro or Micro: How many unemployed people there are in a country?
Macroeconomics
Microeconomics
15
Which of the following is an example of "capital" as one of the 4 factors of production?
A person starting a business to provide a good or service
The people doing the work in a business.
The physical equipment it takes for a business.
The natural resources used to produce a good or a service
16
Which of the following is an example of entrepreneurship?
A person starting a business to provide a good or service
The labor it takes to produce a good or service.
A person purchasing a good or a service
The natural resources used to produce a good or a service
17
Something provided to make you more likely to make a certain choice is...
an absolute advantage
a comparative advantage
an incentive
an opportunity cost
18
This is an economy where the government controls all of the factors of production.
Market Economy
Mixed Economy
Capitalist economy
Command economy
19
Which is the best description of Adam Smiths idea of "
Laissez Faire"?
Division of labor leads to the most productive economy.
People will pursue their own self-interests
Government should not be involved in the economy
A mixed economy leads to the most growth
20
Every single choice we make has an opportunity cost.
True
False
