economics (unit 2) – Flashcards
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the rules of government distribution do not eliminate competition
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true
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shortage and scarcity mean the same thing
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false
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all goods and services are scarce
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true
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scarcity always exists
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true
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market competition allows people to have all that they want
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false
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the allocation rule of "first come-first served" promotes productive cooperation
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false
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an important function of government is to outlaw the use rule of force
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true
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competition through force remains common between governments in the form of wars
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true
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in the United States economy, few resources, goods, and services are allocated through markets
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false
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market competition doesn't eliminate scarcity
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true
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which of the following items is a want?
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a new entertainment system
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which of the following was known as the father of economics?
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adam smith
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which of the follow terms did adam smith use to discuss the motivations of producers in the market place?
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the invisible hand
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the study of economics involves looking at
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unlimited wants and limited resources
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according to the economic theories promoted by thomas malthus, providing charity to those in need would
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be self-defeating to the betterment of society
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all of the other options that are given up when a business makes one choice over another are called
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trade-offs
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the cost of an economic decision that is the most attractive option that is given up because one choice was made over another. what is this called?
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opportunity cost
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a business chooses to build army tanks rather than butter-making machines, bread machines, or candy vending machines. what are these other alternatives called
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trade-off
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what is the main reason people make economic choices?
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their resources are limited
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which of the following cannot be shown on a production possibilities graph?
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the allocation method
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using the factors of production to produce one item means there are ________ resources to use in the production of another.
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less
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which of the following is the name of the law that says that as a country produces less of one product and more of another, there is an increase in the resources needed to expand production of the second product?
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law of increasing costs
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any intersection of points outside the frontier (line) on a production possibilities graph would show that the economy is
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growing due to an increase of resources
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any intersection of points inside the frontier (line) on a production possibilities graph would show that the economy is
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not using its resources to its full potential
