Scarcity
Factors of Production
Rational Decision Making
Economic Systems
Production Possibilities Curve
100
What is the definition of scarcity?
Wants are unlimited, while resources are limited
100
What are the four factors of production?
Land, labor, capital, and entrepreneurship
100
Rational decision making
A: marginal benefit>marginal cost
B: marginal benefit<marginal cost
C: marginal benefit=marginal cost
D: marginal benefit-marginal cost
A: marginal benefit>marginal cost
100
Most countries are which economy?
A: Command economy
B: Mixed economy
C: Market economy
D: None of the above
B: Mixed economy
100
Investing in technology leads to economic growth. Why is that?
It allows the economy to produce more goods and services
200
Opportunity cost is best described as the...
Value of the next best alternative forgone when a choice is made
200
Who is an example of an entrepreneur?
A: Jeff Bezos
B: Mark Zuckerberg
C: Steve Jobs
D: All of the above
D: All of the above
200
Marie decided to trade her iPhone 15 to her friend for a PS5 and both products work perfectly. Both Maria and her friend accepted the trade. We can conclude that
A: Neither party has gained from the exchange
B: Both parties gained because the exchange is voluntary
C: Marie is happy but her friend is not
D: The trade is fraudulent
B: Both parties gained because the exchange is voluntary
200
Which country is a mixed economy?
A: Russia
B: United States
C: North Korea
D: Cuba
B: United States
200
What does point X show about the use of resources in this Production Possibilities Curve?
It shows that there is an impossible amount of resources being used in production
300
Human capital includes all of the following except
A: Skills
B: Political participation
C: Education
D: Training
B: Political participation
300
What is an example of land (natural resources)?
A: Potatoes
B: Machines
C: Manager
D: Fryer
A: Potatoes
300
John and Taylor clean pools. Both of them change filters and vacuum the pool. Currently, John and Taylor do both jobs at the same time, but the process takes a long time. What would MOST likely improve their efficiency?
A: John changes the filters while Taylor vacuums the pool
B: John and Taylor reduce the number of pools they clean
C: John and Taylor change filters at the same time then vacuums together
D: None of the above
A: John changes the filters while Taylor vacuums the pool
300
What are the three basic economic questions?
A: What to produce?
B: How to produce?
C: For whom to produce?
D: All of the above
D: All of the above
300
What best explains the outward shift of the Production Possibilities Curve?
Improvements in technology
400
Walter earned $400 on his check from his job at Quiktrip. He has a choice of spending his check on Travis Scott concert tickets or saving his money. He decides to save his money. What represents Walter's opportunity cost?
Going to the Travis Scott concert
400
In economics, what term refers to workers?
A: Entrepreneurship
B: Capital
C: Labor
D: Land
C: Labor
400
Bruster's producing only ice cream products and USPS focusing on delivering mail are examples of _______________
Specialization
400
List some characteristics of a command economy
Governments has almost full control and citizens have little freedom
400
What is the opportunity cost from 1 of Good A to 2 of Good A
3 of Good B
500
List 5 ways to allocate scarce resources
Price, majority rule, contests, force, sharing, lottery, authority, first-come-first-served, personal characteristics
500
Michael decided to start a new company to detail cars. He bought his own cleaning supplies such as vacuums and soap while he runs his own business. Michael PRIMARILY represents which factor of production?
Entrepreneurship
500
Define positive (pull) and negative (push) incentives
Positive: Less crime, cheaper housing, better schools
Negative: Traffic, overpopulated, high crime rate
500
How can the standard of living in a country increase?
Increase human capital (education and skills) and increase technology
500
Which point is underutilizing production on the Production Possibilities Curve?
A