Modules 1,2,3,4 (quiz) – Flashcards
Unlock all answers in this set
Unlock answersquestion
There are not sufficient resources to produce all the goods and services wanted.
answer
Scarcity in economics means:
question
Human capital.
answer
A high-school graduate who gets a college degree is adding to the economy's stock of:
question
Exists because there are not enough resources to provide all all of the goods and services that people want to purchase.
answer
The problem of determining what goods and services society should produce:
question
Computer engineers.
answer
Which option can best be considered the resources used in the production of computers?
question
What is given up to acquire it.
answer
The opportunity cost of something is:
question
A model.
answer
A simplified representation that is used to study a real situation is called:
question
Ceteris paribus.
answer
The assumption that all factors remain constant except for the variables being studied is called:
question
Household selling a resource in the factor market.
answer
Jim being paid $7.25 an hour to work at a restaurant is an example in the circular flow of a:
question
The new jobs at the new factory will increase local incomes, some of which will be spent at the local grocery store.
answer
A local grocery store benefits when a new furniture factory moves to town and hires workers because:
question
True.
answer
A firm is an organization that produces goods and services.
question
If all resources of an economy are being use efficiently, more of one good can be produced only if less of another good is produced.
answer
The production possibility frontier illustrates that:
question
Inefficient production points.
answer
All points inside the production possibility frontier represent:
question
Must decrease.
answer
Assume an economy is operating on its production possibility frontier, which shows the production of military and civilian goods. If the output of military goods is increased, the output of civilian goods:
question
No idle resources and is using resources efficiently.
answer
If an economy is producing a level of output that is on its production possibility frontier, the economy has:
question
Not all resources are equally suited to producing every good.
answer
Economists usually make the assumption that production is subject to increasing opportunity costs because:
question
Adam Smith
answer
Who wrote The Wealth of Nations, a book that many credit with establishing economics as a discipline?
question
The gains from trade.
answer
Increases in total output realized when individuals specialize in particular tasks and trade are known as:
question
Avoid opportunity costs.
answer
Because of trade, a country may:
question
At a lower opportunity cost than another economy.
answer
An economy is said to have a comparative advantage in the production of a good if it can produce that good:
question
Laurence has an absolute advantage in both programs and sunglasses.
answer
If they spend all night writing computer programs, Laurence can write 10 programs whereas Carrie Anne can write 5. If they spend all night making sunglasses, Laurence can make 6 whereas Carrie Anne can make 4. Given this information and supposing Laurence and Carrie Anne have constant opportunity costs, which statement is correct?
