Economics Chapter 1 Cards – Flashcards
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both goods and services are counted as wealth
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flase
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scarcity is an economic problem with which all societies are faced
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true
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people's needs are limited
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false
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in all societies, the government decides what to produce
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false
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Japan, with an aging population, has had difficulty replacing people with machines
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false
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societies are faced with which three basic questions about production of goods?
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what, how, and for whom
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a can of soup is an example of a
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nondurable good
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which of the following helps determine something's value?
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utility and scarcity
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A nation's wealth is made up of
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all tangible items
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computers used to produce magazine articles
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capital
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the South's rainy season
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land
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a third-grade teacher
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labor
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the manager of a car repair shop
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entrepreneurs
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developer of a new smartphone app
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entrepreneurs
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which of the factors of production involves taking risks and combining resources to produce a good or service?
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entrepreneurs
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opportunity cost refers to
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the value of the next best alternative
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when deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria. These are called
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trade-offs
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consumers are powerful because
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they drive decisions about what to produce
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consumers are expected to read the full information about a product before making a purchase. This is an example of a consumer's
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responsibilities
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economic growth is an increase in a nation's output of goods and services overtime
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true
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economic growth usually can be achieved without investing in new resources
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false
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economic growth causes the production possibilities frontier to contract
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false
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people's skills, abilities, health, knowledge, and motivation all add up to entreprenurship
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false
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separation of tasks to be preformed by different workers is division of labor
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true
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which of the following would result in a change in the production possibilities frontier in the mythical country Alpha?
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an influx of immigrants from other countries, the discovery of an abundant natural resource, a long drought
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In the mythical country Alpha, an entrepreneur has introduced a new technology that makes manufacturing twice as efficient as before. How is this likely to affect the production possibilities frontier?
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it would expand the frontier
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the amount of output in a specific amount of time with a given amount of resources is referred to as
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productivity
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division of labor is practiced because
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it increases efficiency by ensuring that all workers become good at every task
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dave gets a job at the grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating in
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the factor market
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Coach York's definition of Economics
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get the most for what you got
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where did Pablo get his money?
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he sold stock
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What did Big Daddy do to solve his problem?
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created money
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What was Benny Six Toes' occupation?
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coconut seller
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How did the big storm effect the economy?
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it created inflation
