chatper2 – Flashcards
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Which is the correct match of an economic resource and payment for that resource
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Entrepreneurial ability and profit
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An "innovator" defined as an entrepreneur who
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Introduces new products on the market or employs a new method to produce a product
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An economy is efficient when it has achieved
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Both full employment and full production
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Allocative and productive efficiency are conditions that best characterize
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Full production
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When a production possibilities schedule is written in this chapter,four assumptions are made. which is the assumption
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The economy has both full employment and full production
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The production possibilities curve is
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Concave
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What is the economic rationale for the law of increasing opportunity cost
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economic resources are not completely adaptable to alternative uses
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If there is an increase in the resources available within the economy
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the economy will be capable of producing more goods and services
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Which would be the best example of allocative efficiency? When society devoted resources to the production of
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computers with word processors instead of type writers
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When situation would most likely shift the production possibilities curve for nation in an outward direction?
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Increases in technological advances
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the opportunity cost of a new public stadium is the
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other goods and services that must be sacrificed to construct the new stadium
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Which situation would most likely cause a nations production possibilities curve to shift inward
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going to war with another nation and suffering a major defeat
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the combination of products in societys production possibilities table that is the most valued or optimal is determined
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where the marginal benefits equal marginal costs
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The under allocation of resources by society to the production of a product means that
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marginal benefit is greater than the marginal cost
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The private ownership of properly resources and use of markets and prices to direct and coordinate economic activity is characteristic of
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capitalism
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The two kinds of markets found in the circular flow model are
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product and resource markets
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in the circular flow model, businesses
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sell products and buy resources
