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100

Describe the United State economy with regards to economic system and government involvement.

A mixed market economy that is mostly a free market economy with some government intervention.

100

What does a production possibilities frontier show?

An efficient economy that is using all available resources

100

In economics, what does the term opportunity cost mean?

The most desirable thing you didn't choose in a tradeoff

100

Which term describes limited quantities of resources to meet unlimited needs or desires?

scarcity

100

In economics, what are considered biological requirements for life?

Needs

200

In what kind of economic system does the government make all the decisions related to production?

Centrally Planned Economy or Command Economy

200

What tool (graph) can a nation use to understand the potential opportunity cost of the production of two goods?

Production Possibilities Curve

200

What term describes the paid effort people devote to a task?

labor

200

What term describes the natural resources used to produce goods and services?

land

200

In economics, what are the physical things that are not necessary?

Wants

300

In which economic system do people voluntarily buy and sell goods and services?

Free Market Economy

300

What does a point inside the PPC (production possibilities curve) represent?

Underutilization

300

What term would describe a stapler owned by a business?

Physical capital

300

What is the term for physical objects that can be purchased?

Goods

300

In economics, what is the term for actions or activities that one person performs for another?

Services

400

What is an important advantage of a free market over a command economy?

Variety of choices with competitive prices

400

In economics, what does the term scarcity mean?

limited resources
400

Define Human Capital.

Training, education, and skills used to create goods and services

400

What must entrepreneurs do to pursue profits?

Accept the risks of owning a business

400

What is the primary concern in the study of economics?

Making choices to fill wants and needs with limited resources

500

Who decides what is produced in a pure free market economy?

Individuals buying the goods and services

500

What does comparative advantage mean?

The ability to produce a good or service at a lower opportunity cost

500

What does an entrepreneur do with regards to the factors of production?

Combine them to create goods and services

500

What arrangement allows the free exchange of things between buyers and sellers?

A market

500

What must societies do to provide goods and services given that resources are scarce?

Choose how they will use them