ECON (the basics) UNIT REVIEW
A delivery truck represents what factor of production? Capital Entrepreneurship
Capital
A computer is an example of a Natural resource Limited resource Unlimited resource Capital resource
Capital resource
Economic concept that states that consumers determine through purchases, what goods and services will be produced Competition Consumer sovereignty Private property Competition Consumer sovereignty Private property
Consumer sovereignty
A risk-taker represents what factor of production? Capital Entrepreneurship Labor
Entrepreneurship
A trade-off occurs because of unlimited resources. True False
False
Saving money to attending college is a marginal cost. True False
False
Scarcity requires choices made be made by only the government. True False
False
Wants are studied in economics and resources are studied in finance. True False
False
When the marginal cost of an activity exceeds the marginal benefit, people are better off doing more of it. True False
False
A farm represents what factor of production? Capital Labor Land
Land
The additional satisfaction that a person receives from consuming an additional unit of a good or service is called Marginal cost Marginal benefit Additional pleasure Tradeoff
Marginal benefit
Which is NOT an economic resource? Money Land Capital Labor
Money
What businesses use to produce goods and services is called Needs Production Resources
Resources
The U.S. Economy is a mixed economy which means that the economy is Run mainly by government. Run by a combination of both business and government. Run mainly by business.
Run by a combination of both business and government.
A Factor of Production is Used in the production of goods and services. Used in the production of services.
Used in the production of goods and services.
The things you would like but can live without are called Products Resources Wants
Wants
A trade-off is a way to eliminate scarcity an exchange of a good or service for another a means of satisfying all of your needs a way to eliminate opportunity costs
an exchange of a good or service for another
Opportunity cost is the value of the best alternative you gave up resources you gave up scarce resources you have action that was chosen
best alternative you gave up
Economics is the study of managing money choice under conditions of scarcity stocks and bonds markets sociology
choice under conditions of scarcity
Under which economic system would the factors of production most likely be owned by the government? command economy market economy traditional economy professional economy
command economy
The four resources used to produce goods and services are land, labor, capital and technology entrepreneurship education and training goods and services
entrepreneurship
Getting a college education or starting a business is an example of a (n) marginal benefit goal opportunity cost marginal cost
goal
Saving money to buy a house in ten years is an examples of a long-term goal marginal goal trade-off
long-term goal
Saving money to buy a house in ten years is an examples of a(n) trade-off marginal goal long-term goal opportunity goal
long-term goal
Making a profit is highly stressed in this economic system. command economy market economy traditional economy professional economy
market economy
You can decide what job you would like to do in this economic system. command economy market economy traditional economy professional economy
market economy
Materials that come from nature such as water, coal and timber are examples of limited resources capital resources natural resources unlimited resources
natural resources
When marginal benefit exceeds marginal cost The market eliminates that good or service people are better off doing more of it
people are better off doing more of it
The largest source of tax revenue for the federal government is personal income tax social security tax
personal income tax
The market system is characterized by government price controls centralized decision-making private property rights
private property rights
The principle of opportunity cost evolves from the concept of: consumer spending scarcity
scarcity
Your financial goals should be unclear specific limited costly
specific
A friend offers you a Coke, a Pepsi, or a Diet Coke. You don't like Diet Coke, so after some thought, you take the Pepsi. What is the opportunity cost of your choice? zero, because the drink was free the Coke the Coke plus the Diet Coke
the Coke
The opportunity cost of attending college is the least expense one forfeits to attend college. the money one spends on college tuition, books, and so forth. the highest valued alternative one gives up to attend college. equal to the salary one will earn when one graduates from college
the highest valued alternative one gives up to attend college.
The pursuit of self-interest automatically promotes the social interest." This concept is known as: the invisible hand the guiding function of prices
the invisible hand
Custom, traditional ways and beliefs are the base values of this economic system. command economy market economy traditional economy professional economy
traditional economy
Our economy is characterized by abundant productive labor unlimited wants unlimited material resources no energy resources
unlimited wants
Our economy is characterized by unlimited wants unlimited resources no energy resources
unlimited wants
An opportunity cost occurs only when you make a good choice only when you don't make a choice only when you make a bad choice whenever you make a choice
whenever you make a choice
A positive benefit of an unintended consequence might be called a production factor surprise windfall lucky break
windfall