Intro to Econ
What are the three factors of production?
Land, Labor, and Capital
A cost that does not change, no matter how much of a good is produced, is called what?
Fixed Cost
An arrangement that allows buyers and sellers to exchange things, is what?
A Market
Which country is currently the best example of a communist nation?
North Korea
The amount of goods available, is what?
Supply
The limited quantities of resources to meet unlimited wants, is what?
Scarcity
All the money taken in by a company is called what?
Total Revenue
The concentration of the productive effort of individuals and firms on a limited number of activities, is what?
Specialization
a political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government, is what?
Communism
The desire to own something and the ability to pay for it, is what?
Demand
The most desirable alternative given up as the result of a decision, is called what?
Opportunity Cost
The cost of producing one more unit of a good, is called what?
Marginal Cost
The term economists use to describe the self-regulating nature of the marketplace, is what?
Invisible Hand
Who controls the factors of production in a centrally planned economy?
The Government
The point at which quantity demanded and quantity supplied are equal, is called what?
Equilibrium
The line on a production possibilities graph that shows the maximum possible output, is called what?
Production Possibilities Frontier
A level of production in which the marginal product of labor decreases as the number of workers increases, is called what?
Diminishing Marginal Return
The power of consumers to decide what gets produced is what?
Consumer Sovereignty
Name the three industries that the Soviet Union focused on and brought to prominence during the Cold War.
Heavy Industry, Space Program, and Defense Industry
The tendency of suppliers to offer more of a good at a higher price, is what?
Law of Supply
What is the phrase, that refers to the trade-offs that nations face when choosing whether to produce more or less military or consumer goods?
Guns or Butter
When should a store close its doors?
When it can no longer cover its fixed costs
The market in which households purchase the goods and services that firms produce, is what?
Product Market
A social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout a society, is what?
Socialism
Ceteris paribus, is the idea that all things are held constant, except for what?
Price