click below
click below
Normal Size Small Size show me how
Economics quiz
Chapter one
Question | Answer |
---|---|
Scarcity | condition that results from society not having enough resources to produce all the things people would like to have. |
Need | a basic requirement for survival. |
Land | factor of production that includes natural resources not created by humans. |
Capital | factor of production that includes tools, equipment, machinery, and factories use in the production of goods and services. |
Gross Domestic Product | dollar value of all final goods, services, and structures produced within a country's borders in a 12-month period. |
Which of the following is NOT a basic economic question?The three basic questions are: | WHEN to produceWHAT to produce; HOW to produce; and TO WHOM to produce. |
What is the fundamental problem of economics? | Scarcity |
Which of the following lists the four factors of production? | Land, Labor, Capital, and Entrepreneurs. |
Which of the following is NOT a capital good? | an oven at a bakery |
The study of economics includes all the following EXCEPT | Production |
Good | an item that is economically useful or satisfies an economic want |
Service | work that is performed for someone |
Market | location or other mechanism that allows buyers and sellers to exchange a certain economic product. |
Productivity | a measure of the amount of output produced by a given amount of inputs in a specific period of time. |
Human Capital | the sum of the skills, abilities, health, and motivation of people. |
For something to have value, it must | have utility. |
Which of the following is an example of a service? | haircut. |
Which of the following is an example of a good? | a car. |
Specialization refers to | performing one teask relatively more efficiently than another. |
What is economic interdependence? | people's reliance on each other to provide goods and services. |
Opportunity Cost | the cost of the next best aternative when a choice is made. |
Production Possibilities Frontier | diagram representing various combinations of goods and servicesd an economy can produce when all resources are fully employed. |
Trade offs | alternative choices |
Free Enterprise Economy | where consumers and privately owned businesses answer the three basic economic questions |
Standard of Living | the quality of life based on the possession of the necessities and luxuries that make life easier. |
Which of the following best describes the relationship between trade offs and opportunity cost? | opportunity costs are incurred when trade offs are made. |
Imagine you decide to purchase a soccer ball for $35. Which of the following is an opportunity cost of your decision? | something else that could have been brought |
Which of the following is NOT a characteristic of a production possibilities frontier? | it illustrates the concept of opportunity costs. |
The study of economics helps people to | become better decision makers, understand the free-enterprise system and make wise choices for political candidates. |
Which of the following is NOT an example of economic decision making? | taking small, incremental steps. |