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