What is the definition of physical capital?

The money, tools, and machines people use to produce goods.

Person who uses the factors of production to start a busines

Which of the following would NOT count as land?

Scissors barbers use to cut hair

Government controls resources and answers the 3 questions

The effort people use to produce goods and services

Why is it a good idea for employers to make sure their employees are well trained?

It increases their human capital.

When there aren't enough resources to meet unlimited wants

Transitions from command to market economies often fail because

People are used to relying on the gov, so unemployment high

Efficiency is defined by

Using resources like time wisely and not wasting

Which of the following would NOT count as labor?

An entrepreneur getting a patent for his new business idea.

In countries with command economies the government creates these to try to motivate the people

Quotas and national production goals

What is opportunity cost?

The next best option you give up when you make a choice.

Everything you give up when you make a choice

Stability is defined as

Keeping prices steady and unempyment low

In market economies, what/how to produce things are decided by

Producers and consumers (people)

Mixed economies are characterized by

Parts of other 3 systems; like private businesses but taxes

Making choices to satisfy wants with limited resources

According to an economist, what is the definition of land?

Any resource that comes from nature

What is GDP and what goal does it relate to?

Measurement of production for a country; related to growth

Which of the following would NOT count as physical capital?

Coffee beans used to make coffee.

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Economics Unit 1 Review

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Economic Systems review

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Questions 26

Answers

1
Which of the following is NOT a goal market economies focus on?
Growth
Equity
Efficiency
Freedom
2
What is the definition of physical capital?
The effort of employees.
The skill and knowledge of employees.
The idea for a new business model.
The money, tools, and machines people use to produce goods.
3
An entrepreneur is
The tools used to make products.
Person who uses the factors of production to start a busines
The skills of workers.
The natural resources used to make products.
4
Which of the following would NOT count as land?
The wool from sheep used to make sweaters
The dirt farmers grow crops in
Scissors barbers use to cut hair
The wood used to build homes
5
Which of the following is NOT one of the 3 main economic questions?
How to distribute income
How to produce
Who to produce for
What to produce
6
In command economies
Government controls resources and answers the 3 questions
There is a focus on growth and equity
Customs and traditions answer the 3 questions
Producers and consumers answer the 3questions for themselves
7
Labor is defined as
Any resource that comes from nature
The tools used to produce goods and services
The effort people use to produce goods and services
The skills of your workers
8
Why is it a good idea for employers to make sure their employees are well trained?
It increases their physical capital.
Their taxes will decrease.
It increases their human capital.
Their labor force will increase.
9
What is scarcity?
When there aren't enough resources to meet unlimited wants
An economic system that focuses on customs
The next best option you give up when you make a choice
An economic goal that market economies pursue
10
Transitions from command to market economies often fail because
Production becomes more efficient
GDP increases dramatically.
People are used to relying on the gov, so unemployment high
Too many goods are produced
11
Efficiency is defined by
Increasing GDP from year to year
Keeping prices steady and unemployment low
Using resources like time wisely and not wasting
Giving everyone equal resources
12
Traditional economies focus on doing things like they've always been done, the trade off is
Stability
Equity
Growth
Security
13
Which of the following would NOT count as labor?
An entrepreneur getting a patent for his new business idea.
A basketball player playing in a game.
A secretary answering phone calls.
A janitor sweeping floors.
14
In countries with command economies the government creates these to try to motivate the people
Private investment opportunities
Free access to healthcare and education
Pay raises
Quotas and national production goals
15
What do traditional economies focus on?
Providing equity to all people.
Providing freedom for people to make their own choices
Government control over resources
Maintaining usual jobs roles
16
What is opportunity cost?
The next best option you give up when you make a choice.
When there aren't enough resources to meet unlimited wants
Everything you give up when you make a choice.
How much money it takes to produce something
17
Which of the following goals is NOT focused on in command economies?
Equity
Stability
Security
Efficiency
18
When economies transition from command to market, the trade-offs are
Stability, Efficiency, Growth
Equity, Stability, Security
Efficiency, Freedom, Growth
Equity, Freedom, Security
19
What is trade-off?
The next best option you give up when you make a choice
Everything you give up when you make a choice
An economic system designed around individual freedoms
An economic system designed around government control
20
Stability is defined as
People not having to worry about losing their jobs or money
Keeping prices steady and unempyment low
Everyone getting equal income
Increasing GDP each year
21
In market economies, what/how to produce things are decided by
Customs
Economists
Government
Producers and consumers (people)
22
Mixed economies are characterized by
A focus on customs and traditions
Parts of other 3 systems; like private businesses but taxes
Diverse workforce
Government control of resources and businesses
23
What is economics?
How countries control trade
Making choices to satisfy wants with limited resources
How the government and trade interact
How people interact with politics and money
24
According to an economist, what is the definition of land?
Any resource that comes from nature
The tools used to produce goods
The skill of your human workers
Workers
25
What is GDP and what goal does it relate to?
Measurement of production for a country; related to equity
Measurement of production for a country; related to growth
Measurement of equality; related to equity
Measurement of happiness; related to efficiency
26
Which of the following would NOT count as physical capital?
Coffee beans used to make coffee.
Tractors farmers use to plow fields
Coffee makers in coffee shops.
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Economics Unit 1 Review Flashcards | StudBud