What are labor, capital, entrepreneurs, and natural resources (land)?
100
People buy and sell freely and willingly.
What is voluntary exchange?
100
Alternatives that people face when making choices.
What are trade-offs?
100
A central authority decides how, what, and for whom to produce
What is a command economy?
200
iPod versus food/shelter.
What is a want versus a need?
200
The difference between the factor market and the product market.
What is the idea that people spend money in the product market and earn money in the factor market while businesses receive money in the product market and spend money in the factor market on land, labor, and capital?
200
One role of the government in a free enterprise system.
What is consumer, protector, regulator, promotor, etc. (answers will vary)?
200
The purpose of the decision-making grid.
What is a way to help you consider alternative choices of action to arrive at an economic decision?
200
A disadvantage of traditional economic systems.
What is discouraging new ideas (answers will vary)?
300
The three basic economic questions.
What is "what to produce," "how to produce," and "for whom to produce"?
300
Financial capital.
What is the money used to buy the tools and equipment used in production?
300
The two types of economic systems that most fit the US economy?
What is command and market?
300
The graph of the maximum combinations of goods and services that can be produced.
What is the production possibilities frontier?
300
An example of economic/social goals in the Preamble.
What is economic freedom, security, etc. (answers will vary)?
400
Creating a high volume of products using an assembly line process in which each operator is responsible for a specific step in the process.
What is mass production?
400
Water is fairly cheap while diamonds are expensive.
What is an example of the paradox of value?
400
An example of a capital good that is both a capital good and a consumer good.
What is a small tractor, etc. (answers will vary)?
400
An example of opportunity cost in your life.
Answers will vary.
400
The group that ultimately determines what is produced in a free enterprise economy.
What are consumers?
500
To learn to make better decisions.
What is the purpose of studying economics?
500
A good or service that is scarce AND useful.
What is "valuable" in economic terms?
500
The most profitable investment
What is human capital?
500
The PPF shifts outward.
What is the effect of economic growth (or more products being produced) on the PPF?
500
An example of economic efficiency.
What is using all resources in production, etc. (answers will vary)?