question

When manufactured goods are used to produce other goods and services, they are called capital goods.

answer

true

question

A nondurable good lasts for less than five years when sued on a regular basis.

answer

false, three

question

The paradox of value occurs when some necessities have little value, while some non-necessities have a much higher value.

answer

true

question

Economic growth occurs when a nation's total output of the goods and services increases over time.

answer

true

question

The circular flow of economic activity describes an economy that is free of market.

answer

false

question

In economics, land refers to the natural resources needed for production, such as forests, minerals, and climate.

answer

true

question

The four factors of production are land, capital, labor, and financing.

answer

false

question

Economics is a social science because it deals with how people behave while trying to satisfy their needs and wants through use of relatively scarce resources.

answer

true

question

Economic products consist of both goods and services that are useful, relatively scarce, and transferable to others

answer

true

question

A nation's wealth refers to a worth that can be expressed in dollars and cents.

answer

false

question

Both goods and services are counted as part of a nation's wealth.

answer

true

question

Division of labor increases efficiency because it allows workers to master many aspects of their jobs.

answer

false, one

question

Economic interdependence limits a nation's growth and usually reduces the efficiency of production.

answer

false, encourages

question

Time is an opportunity cost when a manufacturer assigns workers to one task rather than to another.

answer

true

question

The production possibilities frontier can be reached even if certain resources remain idle.

answer

false

question

The situation in which some necessities have little value while some non necessities have a much higher value is known as a. paradox of value b. opportunity cost c. trade-offs

answer

a

question

Manufactured goods needed to produce other goods and services are called a. nondurable goods b. capital goods c. consumer goods

answer

b

question

To arrive at an economic decision, a decision making grid may be used to evaluate a. productivity b. only durable goods c. alternative choices of action

answer

c

question

Division of labor is a characteristic of a. home craft businesses b. assembly line production c. classroom education

answer

b

question

The study of economics is important because it enables us to a. describe our standard of living b. increase our consumption of consumer goods c. become better decision makers

answer

c

question

The dollar value of all final goods and services and the most comprehensive measure of a country's total production output a. financial capital b. a cost-benefit analysis c. Gross Domestic Product (GDP)

answer

c

question

A popular model used to illustrate the concept of opportunity cost is a. the production possibilities frontier b. entrepreneurship c. the paradox of value

answer

a

question

An economy at its production possibilities frontier is operating a. with slow economic growth b. at full potential c. without division of labor

answer

b

question

The money used to buy the tools and equipment needed for production is known as a. the factors of production b. financial capital c. wealth

answer

c

question

Actions in one part of the country or world that have an economic impact on what happens elsewhere are examples of a. trade-offs b. specialization c. economic interdependence

answer

c

question

___ describes the concept that everything we do has a cost

answer

TANSTAAFL

question

WHAT, HOW, and FOR WHOM to ___ are the three basic economic questions

answer

produce

question

The ___ of production include land, labor, capital, and entrepreneurs

answer

factors

question

___ is a key measure of a nation's economic health

answer

GDP

question

The study of ___ helps all of us to become more informed citizens and better decision makers

answer

economics

question

A ___ grid can be used to evaluate alternatives

answer

decision-making

question

The opportunity cost of doing something is the next best alternative, or ___, that you give up

answer

tradeoff

question

A production possibilities frontier shows the various possible combinations of output that can be produced when all ___ are fully employed

answer

resources

question

When economic growth takes place, the ___ production possibility shifts outward, showing that more products are produced than before

answer

production possibility fronteir

question

The study of economics helps people make better __

answer

decisions

question

worth that can be expressed in dollars and cents

answer

value

question

study of how people try to satisfy their needs and wants through the used of limited resources

answer

economics

question

tools, equipment, machinery, and factories used in the production of goods and services

answer

capital

question

condition of not having enough resources to produce all the things people want

answer

scarcity

question

cost of the next best alternative use of money, time, or resources when one choice is made rather than another

answer

opportunity cost

question

sum of those economic products that are tangible, scarce, useful, and transferrable

answer

wealth

question

people with all their efforts, abilities, and skills

answer

labor

question

alternative choices made by consumers in the marketplace

answer

trade-offs

question

quality of life based on the possession of the necessities and luxuries that make life easier

answer

standard of living

question

item that is economically useful or that satisfies an economic want

answer

good

question

manufactured goods that are used to produce other goods

answer

capital good

question

process of using up goods and services to satisfy wants and needs

answer

consumption

question

basic requirement for survival

answer

need

question

way of expressing a need that leads to a preference for some goods over others

answer

want

question

work that is performed for someone

answer

service

question

diagram representing various combinations of goods and/or services that an economy can produce when all productive resources are fully employed

answer

production possibilities frontier

question

process of creating goods and services

answer

production

question

market where productive resources are bought and sold

answer

factor market

question

any good that lasts three years or more when used regularly

answer

durable good

question

economy is which consumers and privately owned businesses make the majority of the WHAT, HOW, and FOR WHOM decisions

answer

free enterprise economy

Economics Review practice test – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards