Scarcity, Opportunity Costs, and Trade Offs
What does the acronym TNSTAAFL stand for?
pg. 10
There's no such thing as a free lunch.
Is a haircut an example of a good or a service?
Service.
These individuals are thought of as being a driving force in an economy because they are the people who start new businesses or bring new products to the market.
pg. 23
Entrepreneurs.
What type of economy do the Inuit from Northern Canada have?
pg. 51
Traditional economy
Dutch Bros vs. Starbucks is an example of which of the 5 American Free Enterprise characteristics?
pg. 91
Competition.
True or False:
A nation's wealth is made up of both tangible (goods) and intangible (services) items.
False: it is only made up of tangible items.
A durable good is something that lasts more than 3 years. Which of the following is an example of a durable good.
a. car
b. cake
c. both a and b
a. car
What are the 4 factors of production?
pg. 23
Land, capital, labor, entrepreneurs
True or False:
Most economies today are pure market economies.
Name one way in which you can exercise your economic freedom.
answers may vary.
going to a job interview, buying 10 pairs of shoes, quitting your job, etc.
What is another word for, "next best choice."
pg. 25
Opportunity Cost.
In economics, what is another word for value?
pg. 9
Utility.
Keeping copies of your receipts is an example of:
a. consumer rights
b. consumer responsibilities
c. both a and b
pg. 28
b. consumer responsibilities
Fill in the blank: The three basic questions that are asked in every economic system are: ____ to produce, ___ to produce, and ___ ____ to produce.
pg. 11-12
What to produce, how to produce, and for whom to produce.
Fill in the blank: and economy with both capitalism and ____ _______ = free enterprise.
free markets
You are given $2,000 and have to decide whether it is smartest to spend your money on a new car, a vacation, a new laptop, or a shopping spree. What would all of your choices be called?
pg. 26
Trade-offs.
A bakery is using an oven to bake cookies, cakes, and bread. They then plan to sell those baked goods. Which of the 4 factors of production would the oven fall under?
Capital.
Under which U.S, president was legislation created to give some consumers some protection? (The consumer rights).
pg. 28
John F. Kennedy
In a market economy, who decided what will be produced?
Consumers.
Name 1 of the 7 major economic and social goals we have established here in the United States.
Economic freedom, economic efficiency, economic equity, economic security, full employment, price stability, or economic growth.
What does GDP stand for?
pg. 13
Gross domestic product.
If a country acquires a new, abundant resource, will the production possibilities frontier expand, or become smaller?
It would expand. More resources means more goods could be produced.
The production possibilities frontier can be affected by:
a. population
b. lack of resources
c. abundance of resources
d. all of the above
d. all of the above
A business is not sure if they can compete with their competitor or not. Not knowing whether their business will be successful or not gives them a high degree of uncertainty. A high degree of uncertainty is a disadvantage of which of the three economic systems?
pg. 60
Market economy.
Gas prices going from about $2/ gallon to about $4/gallon is an example of _________.
inflation