Economics Chapter 1 Quiz Study Guide – Flashcards
Unlock all answers in this set
Unlock answersquestion
a situation that occurs when a producer cannot offer a particular good or service at the current price.
answer
Shortage
question
the effort that a person devotes to a task, for which the person is paid.
answer
Labor
question
physical objects such as baseballs or umbrellas.
answer
Goods
question
the study of how people make decisions to satisfy their needs and wants.
answer
Economics
question
What are the three factors of production?
answer
Land, labor, and capital
question
Building extra space in a factory to simplify production is an example of using ____ capital to save time and money.
answer
Physical
question
To what part of an industry does a worker's education contribute?
answer
Human capital
question
A person who starts an all-organic cleaning supplies business that employs others is an ____.
answer
Entrepreneur
question
What is the difference between a shortage and a scarcity?
answer
A shortage can be temporary or long-term, but scarcity always exists.
question
What does an economist mean by the term LAND?
answer
all natural resources used to produce goods and services
question
A ____ is giving up a benefit for a better one.
answer
Trade-off
question
The ____ is sacrifice you make for a better benefit.
answer
Opportunity cost
question
____ is finding the most efficient solution
answer
Thinking at the margin
question
The economic concept of ____ means that a government must decide whether to produce more or less military or consumer goods.
answer
Guns or Butter
question
If a person who wants to buy a CD has just enough money to buy one, and chooses CD A instead of CD B, then CD B is the ____.
answer
Opportunity cost
question
A decision-making grid is a visual way of ____.
answer
Making marginal decisions.
question
Every decision involves trade-offs because ____.
answer
Everyone's resources are limited.
question
A decision is made at the margin when each alternative considers where the most costly alternative will be. (...)
answer
...
question
The line in production possibility that connects the points.
answer
Frontier
question
Anything left of the frontier is ____.
answer
Underutilization
question
Anything right of the frontier is ____.
answer
Efficiency
question
the use of resources to produce the most goods and services.
answer
Efficiency
question
when an economy produces less that it should with its resources.
answer
Underutilization
question
the line on a graph that shows production possibilities of two goods.
answer
Production possibilities frontier
question
the idea that more resources are needed when production shifts to a second good.
answer
Law of increasing costs
question
an example of economic ineffciency
answer
Factory shutdown
question
What kinds of goods can be compared on a production possibilities curve?
answer
Any two categories of goods
question
What line on a production possibilities curve shows the amounts of goods produced?
answer
Production possibilities frontier
question
What happens when workers are laid off?
answer
Underutilization
question
What happens as production of one item switches to the production of another item?
answer
More resources are needed
question
Who is the founder of Under Armour?
answer
Kevin Plank
question
Who is the founder of Nike?
answer
Phil Knight
