1
Describe the United State economy with regards to economic system and government involvement.
A mixed market economy that is mostly a free market economy with some government intervention.
What does a production possibilities frontier show?
An efficient economy that is using all available resources
In economics, what does the term opportunity cost mean?
The most desirable thing you didn't choose in a tradeoff
Which term describes limited quantities of resources to meet unlimited needs or desires?
scarcity
In economics, what are considered biological requirements for life?
Needs
In what kind of economic system does the government make all the decisions related to production?
Centrally Planned Economy or Command Economy
What tool (graph) can a nation use to understand the potential opportunity cost of the production of two goods?
Production Possibilities Curve
What term describes the paid effort people devote to a task?
labor
What term describes the natural resources used to produce goods and services?
land
In economics, what are the physical things that are not necessary?
Wants
In which economic system do people voluntarily buy and sell goods and services?
Free Market Economy
What does a point inside the PPC (production possibilities curve) represent?
Underutilization
What term would describe a stapler owned by a business?
Physical capital
What is the term for physical objects that can be purchased?
Goods
In economics, what is the term for actions or activities that one person performs for another?
Services
What is an important advantage of a free market over a command economy?
Variety of choices with competitive prices
In economics, what does the term scarcity mean?
Define Human Capital.
Training, education, and skills used to create goods and services
What must entrepreneurs do to pursue profits?
Accept the risks of owning a business
What is the primary concern in the study of economics?
Making choices to fill wants and needs with limited resources
Who decides what is produced in a pure free market economy?
Individuals buying the goods and services
What does comparative advantage mean?
The ability to produce a good or service at a lower opportunity cost
What does an entrepreneur do with regards to the factors of production?
Combine them to create goods and services
What arrangement allows the free exchange of things between buyers and sellers?
A market
What must societies do to provide goods and services given that resources are scarce?
Choose how they will use them