TERMS
What is the alternative or thing given up to a choice you make called?
Opportunity Cost
Match the correct economic system with the scenario/definition provided below:
The country of the United States has an economy based off of some government control and a relationship between the consumers and producers. In our economy the consumer has a fair amount of power to affect things such as prices, but the government still has the ultimate say so on some things.
Mixed Economy/Market Economy
Societal costs are only limited to one individual.
False
How many categories of resources are there?
A. 2
B. 3
C. 1
D. 4
D. 4 (land, capital, labor, entrepreneurial ability)
Why is there a need for economic?
A. Because resources and services are scarce.
B. Because money is a requirement for getting paid after a job well done.
C. Because the demand for governments to trade is low and their dependence on their own populations is high.
D. Because the prevalent consumer goods make the need for actual money very low.
A. Because resources and services are scarce.
What does it mean there something in short supply?
Scarcity/Scarce
Billy has $25 to spend on whatever he wants too. His choices as to what he can spend his money on are a new bike, a new pair of shorts, or a new backpack. If he chooses to buy a new pair of shorts, then what was his opportunity costs?
New Bike and New Backpack
Pink collared jobs are jobs mainly limited to air conditioned rooms or jobs that are not physically demanding.
False
Which of the following statements about money is false?
A. Money is a reproductive resources.
B. Money is a necessity when it comes to having a high standard of living.
C. Money is a limited resource that loses value the more you use it.
D. All of the above
A. Money is a reproductive resource.
Which of the following scenarios shows the most evident lack of allocative efficiency?
A. A nation forces all of their farmers to produce emus as a meat source even though very few people actually eats this type of meat.
B. A nation decides to produce trucks and cars instead of importing them from other countries.
C. A nation decided to produce feed corn and ship it to nations in Europe that need food for their livestock.
D. A nation encourages companies to produce war materials instead of consumer materials after an attack on them starts a war.
A. A nation forces all of their farmers to produce emus as a meat source even though very few people actually eats this type of meat.
What is the difference between goods and services?
Goods - physical things you purchase
Services - actions provided for purchase
The situation explained below is an example of what economic philosophy or principle:
Hurricane Katrina was an unplanned and unexpected event that causes drastic changes in the prices of things such as gas and water for those who lived all along the coast of Mississippi and Louisiana.
Adam Smith's "Invisible Hand"
Blue collar jobs are primarily paid based off of an hourly rate, whereas white collar jobs are primarily paid based off of a yearly salary or contract.
True
Which of the following is a byproduct or outcomes of using allocative efficiency?
A. High standard of living
B. Prosperity
C. Poverty
D. Both A and B
D. Both A and B
A. Emotional rewards of raising children.
B. The average cost of raising a child to age 18 was $233,610.
C. Families with children are spending roughly 32% of their income on housing.
D. The cost of childcare in the U.S. ranges from $5, 436 and $24, 243 annually.
A. Emotional rewards of raising children.
What does it mean to make use of the resources you have to make the goods and services demanded by the public?
Allocative Efficiency
In the situation below define what is considered physical capital and what is considered human capital:
Tommy has been a construction worker all his life. He attended a vocational school to learn the skills necessary for the job, and he uses those skills everyday through tools such as hammers, drills, and carpentry.
Human - knowledge to use tools/college/etc.
You have to have a traditional college degree to become a millionaire.
False
How many economic systems are there?
A. 1
B. 3
C. 2
D. 4
What qualities set white collared jobs apart from other jobs?
A. All of these are unique to white collared jobs.
B. Often linked to office environments.
C. Usually needs a higher degree of education.
D. Receives an annual salary.
A. All of these are unique to white collared jobs.
What are the command, market, traditional, and mixed economy's examples of?
Economic Systems
If Tommy is able to maximize the factors of production around him as well as the resources he has to make the most money he can as quickly as possible, then what economic term is he putting into action or exemplifying?
Entrepreneurship Ability
True
Which of the following are questions that all societies must answer due to scarce resources?
A. What is being produced?
B. Who gets what is being produced?
C. How is it getting produced?
D. All of the above
D. All of the above