Basic Economics
Factors of Production
Scenarios
Scarcity
Economic Issues
100
The study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources.
What is Economics?
100
people with efforts, abilities, and skills
What is the definition of labor?
100
Fred and Ann both decide to see the same movie when they are given free tickets to the movie we know that
What is an opportunity cost for both Ann and Fred, they decide the value of the forgone alternative?
100
As a student of economics, when you speak of scarcity, you are referring to
What is the inability of society to satisfy all human wants because of limited resources?
100
Division of labor refers to
What is assigning different workers to different tasks?
200
Land, capital, labor, entrepreneurs
What are the four factors of production?
200
A risk taker in search of profits who does something new with existing resources
What is an entrepreneur?
200
If you can make $20,000 a year teaching, $25,000 a year typing, $30,000 a year driving a cab, and $40,000 a year as a chef, you have a comparative advantage in
What is being a chef?
200
In every economic system, choices must be made because resources are
What is limited, but human desires and wants are unlimited
200
Division of labor increases the output of society by
What is allowing resouces to specialize in the tasks for which they have a comparative advantage?
300
What, how, whom
What are the three basic economic questions?
300
They provide the initiative that combines the resources of land, labor, and capital into new products
What are the functions of an entrepreneur?
300
Assume that Economy A and Economy B have the same resources, but that individuals in Economy A have specialized wheras individuals in Economy B have not. Given this information, you can determine that
What is Economy A will have a higher output than Economy B?
300
The difference between scarcity and a shortage
What is scarcity is always a part of human life while shortages usually are temporary?
300
In economic terminology, the accumulated training and education that workers receive that increases their productivity is referred to as
What is human capital?
400
Gifts of nature
What is the definition of land?
400
In economic terminology, when a resource is used to produce output it is referred to as
What is factors of production?
400
In 1992, hurricanes damaged parts of Florida, Louisiana, and Hawaii, destroying homes, businesses, schools, and infrastructure. In strictly economic terminology, these hurricanes are said to have caused
What is a shortages, because supplies were cut off and goods were destroyed?
400
Scarcity implies that people must
What is make choices?
400
When nations specialize in their areas of comparative advantage and then trade with the rest of the world, the result is that
What is the average standard of living in the world will go up?-
500
Land - rent, labor - wages, capital - interest, entrepreneurs - profit
What are the many payments for the factors of productions called?
500
society's pool of applied knowledge concerning the production of goods and services.
What is technology?
500
Bill Bone crusher graduates from college with a choice of playing professional football at $2 million a year or coaching for $50,000 a year. He decides to play football, but eight years later he quits football to make movies for $3 million a year. His opportunity cost at graduation was ________ and eight years later was ______.
What is 50,000.00; $2 million?
500
Suppose you have four-choices-go to a movie, read a book, watch television, or go to a concert. You choose to go to a movie. The opportunity cost of the movie is
What is the value of the activity that you would have selected if you had not gone to the movie.
500
Name three types of business economies
What is traditional, market and command?
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