Economics Module 1-3 Test 1 – Flashcards
Unlock all answers in this set
Unlock answersquestion
exists if we desire more of something than we can have.
answer
Scarcity
question
You make a _______ when you give up one thing to get something else.
answer
Tradeoff
question
of a choice is the value of the next-best alternative given up when that choice is made.
answer
Opportunity cost
question
is a collection of people who share a common bond, such as those living in a city, a country, or even the entire world.
answer
Society
question
are minimal requirements of things such as food, water, and shelter that are necessary for survival.
answer
Needs
question
are things that are desired but are not essential to life.
answer
Wants
question
is a system for coordinating the production and distribution of goods and services.
answer
Economy
question
are physical items produced in an economy, such as jeans, tennis rackets, popcorn, cars, and homes.
answer
Goods
question
are activities produced in an economy, such as education, entertainment, and health care.
answer
Services
question
are the basic elements from which all goods and services are produced.
answer
Resources
question
is anything drawn from nature for use in the production of goods or services.
answer
Land
question
Economists classify resources into four types:
answer
land, labor, capital, and entrepreneurship.
question
is the time and effort people contribute to the production process.
answer
Labor
question
is anything long lasting that is created by humans for use in production.
answer
Capital
question
is any long-lasting good that is used to make other goods or services.
answer
Physical Capital
question
refers to the skills and knowledge of workers.
answer
Human Capital
question
is the willingness of people to organize, operate, and assume the risks involved with business ventures.
answer
Entrepreneurship
question
include the four types of resources-land, labor, capital, and entrepreneurship along with anything made with these resources that is then used to make something else, such as cement, steel, lumber, and plastic.
answer
Inputs
question
is a simplified representation of reality. ______ help you focus on a few aspects of the real world by stripping away nonessential details.
answer
Model
question
is a curve that shows the maximum quantity of one good that can be produced for each possible quantity of another good produced.
answer
Production Possibilities Frontier (PPF)
question
states that the opportunity cost of a good rises as more of the good is produced.
answer
Law of increasing opportunity cost
question
An economy is ______ if there is no opportunity to make someone better off without making anyone else worse off.
answer
Efficient
question
is an increase in the ability to produce goods and services over time.
answer
Economic growth
question
is the study of how people make decisions and how those decisions affect others in the economy.
answer
Microeconomics
question
is the study of the economy as a whole.
answer
Macroeconomics
question
Name a good that is scarce for you. What tradeoff must you make to get it?
answer
Sleep. Must trade off doing things with friends, homework, or watching tv to get more sleep.
question
What is your opportunity cost if you go to the movies tonight?
answer
My opportunity cost would be doing homework because that is what I am choosing not to do when I choose to go to the movies.
question
What is the difference between a need and a want?
answer
A need is something that you cannot live without, food, water, shelter, and a want is something you desire but do not need
question
Name the four types of resources.
answer
Land, Labor, Capital, Entrepreneurship
question
What does a production possibilities frontier represent?
answer
PPF represents the most possible productivity in an economic system.
question
the study of how individuals, families, businesses, and governments use limited resources to fill unlimited wants is the study of how people make choices to satisfy their needs and wants is the study of choice under conditions of scarcity.
answer
Economics
