Exam 1 – Flashcard Test Questions
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how to use limited resources to satisfy unlimited wants as fully/completely as possible.
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Economics is the study of
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Land, Labor, Capital,Entrepreneurship
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What are the four categories of economic resources?
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D) machinery and other human-made aids to production
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In Economics the term "Capital" means: A) Money B) raw materials, such as timber and mineral resources C) stocks and bonds D) machinery and other human-made aids to production
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A) the stoves and other food preparation equipment in a restaurant.
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Which of the following is an example of "capital" as the term is used by economists to signify a resource? A) the stoves and other food preparation equipment in a restaurant. B) minerals and other resources in their natural state. C) money D) the managers who run the company.
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C) Money
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Which of the following is NOT an economic resource: A) Capital B) Land C) Money D) Entrepreneurship E) Labor
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other things being equal
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The term "Ceteris Paribus" means
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The opportunity cost of 40 units of military goods is 100 units of civilian goods
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If a nation can produce 400 units of civilian goods and 200 units of military goods or 300 units of civilian goods and 240 units of military goods, the opportunity cost is
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an outward shift of the Production Possibilities Curve (PPC)
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Economic growth would be depicted by
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The combination of two products that an economy is 'capable' of producing with its finite resource stock
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A Production Possibilities Curve shows
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the economy's resource stock is fixed or unchanged
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A nation's production possibilities curve is constructed under the assumption that
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more consumer goods if it produces fewer capital goods.
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If an economy is operating on its production possibilities curve for consumer goods and capital goods it can only produce
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some economic resources are unemployed.
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If a society is operating inside its production possibilities curve for guns and butter, then
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a resource-saving advance in production technology.
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An economy's production possibilities curve would shift outward as a result of
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on or inside its production possibilities curve, but no combination outside the curve.
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Given it's present resource stock and existing techniques of production, the economy is capable of producing any combination of products
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operate outside its production possibilities curve
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Trade with other nations can make it possible for a country to
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Normative judgement
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"The federal government 'ought' to spend more money on medical treatment for the poor and less on the military". This sentence is an example of a
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if a society desires more of some particular product, it must sacrifice larger and larger amounts of other products
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According to the law of increasing opportunity costs
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False- that is the study of Microeconomics
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T/F: A firm's decision about what the size of it's new factory should be is studied by Macroeconomists
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True
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T/F: The opportunity cost of an action is the most valued or next best alternative you give up to take that action.
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True
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T/F: The fundamental economic problem is the fact that our wants exceed our capacity for satisfying those wants.
