#1
Name all 3 factors of production
Land, Labor, Capital
What is the product market?
A) the market in which income is received for supplying land, labor, or capital
B) the market in which governments collect taxes from firms and consumers
C) the market in which firms purchase the factors of production from households
D) the market in which households purchase the goods and services that firms produce
D - the market in which households purchase the goods and services that firms produce
Which economy is efficient?
A) one that makes fewer goods because workers are laid off
B) one that uses fewer resources than are available
C) one that makes the most goods and services possible
D) one that wastes fuel when making goods
C
Which of the following best describes what is meant by voluntary trade creates wealth?
Both consumer and producer benefit
What sport is involved in march madness?
College basketball
If you choose between two summer jobs, the one you do not choose is the ______ of your decision.
Opportunity cost
What is one advantage of a centrally planned economy?
Quick adjustment to changing conditions - If immediate need... then, government can get that going.
Who owns the factors of production?
Households
What is the profit motive?
The incentive to make money. The driving force between companies decisions.
Why does the government promote progress in technology?
Better technology = stronger economy & efficiency
Which of the following lists of factors of production would an economist categorize as land?
A) factories, office buildings, assembly lines, workers
B) farm fields, tractors, pesticides, fertilizers
C) dams, bridges, rock quarries, oil wells
D) iron ore, natural gas, fertile soil, water
Every decision involves trade-offs because
Scarcity - Everyones resources are limited
Describe a centrally planned economy.
The central government makes all economic decisions.
What does “consumer sovereignty” mean in a free market economy?
Consumers have the ability to choose what to buy which influences what gets produced in a free market economy.
Which statement best describes a major role of government in a free enterprise system?
Regulating business in order to protect the public.
Unsafe foods
The community of Desertville traditionally produces a large number of tires and a small amount of kiwi fruit.
Kiwis are becoming increasingly popular, and Desertville has decided to expand Kiwi fruit. What will happen to their production of tires?
Decreases. They must make trade offs.
What happens as production of one item switches to the production of another item? What do you need more of?
More resources are needed -
Example -
Company produces hats. Then, they start producing water bottles. They need more resources!
What are the 3 economic questions?
What goods and services to produce?
How to produce?
Whom to produce for?
Which of the following best describes the physical flow from households to firms shown in the diagram ?
A) interest and profits
B) labor and land
C) goods and services
D) wages and salaries
Labor & land
The owner of a clothing factory wants to make more winter coats. According to the law of increasing costs,
what will happen next?
They will have to give up something in order to make more winter coats.
More winter coats = less jeans
SCARCITY
What physical capital does a woodworker need?
Saws & drills
All goods and services are scarce because
resources are limited. Scarcity
On which arrow would weekly grocery shopping fall on a circular flow model? Draw it on the board.
List 4 key principles of the free enterprise system.
Ducks, Blazers, 49ers