smartbook econ 1

True or false: Economic interdependence means that countries are more able to provide for their own wants and needs without having to rely on others. True false question.TrueFalse

False

How can one tell when an economy is producing on its production possibilities curve? Multiple select question. All factories are working at capacity. All land is fully utilized. All wants and needs are being fully satisfied. Nobody in the labor force is unemployed.

All factories are working at capacity. All land is fully utilized. Nobody in the labor force is unemployed.

Select all that apply Why is economic growth important? Multiple select question. Because of population growth, which means there will be more people wanting even more goods and services Because it is good for the environment to have more goods and services produced Because of scarcity, with everyone wanting more goods and services than they currently have

Because of population growth, which means there will be more people wanting even more goods and services Because of scarcity, with everyone wanting more goods and services than they currently have

The study of economics will give us a understanding of political issues.

Blank 1: better or good

Right to be safe Right to be informed Right to choose Right to be heard Right to have redress

Choice The right to be protected against harmful goods The right to have useful facts and material when making a reasoned choice The right to be protected against unfair competition Choice The right of representation in product protection laws The right to be compensated if harmed by a consumer product

What helps individuals analyze an economic problem by listing alternatives as well as criteria to evaluate each alternative? Multiple choice question. Production possibilities curve Circular flow diagram Decision-making grid

Decision-making grid

When economists summarize the country's economic health, which of the four elements that make up the scope of economics are they performing? Multiple choice question. Explanation

Description

True or false: The optimal place to produce is either on or inside the production possibilities frontier. True false question. True False

False

Select all that apply What are some consumer responsibilities? Multiple select question. Read operating instructions and other disclosure requirements before making a purchase. Report a product failure if you cannot fix it yourself. Keep copies of all correspondence and records to get a problem solved. Keep copies of receipts and guarantees.

Read operating instructions and other disclosure requirements before making a purchase. Keep copies of all correspondence and records to get a problem solved. Keep copies of receipts and guarantees.

In the context of the circular flow diagram, what type of activity would we observe in the factor market? Multiple choice question. Businesses sell economic products. Consumers buy goods and services. Workers earn an income when they go to work.

Workers earn an income when they go to work.

Opportunity cost is defined as the value of the next best given up.

alternative

Trade-offs are the various choices given up in favor of the choice made.

alternative

Question Mode Fill in the Blank Question Fill in the blank question. The term is used to describe the efforts by economists to determine why some prices change or why some people earn more income than others.

analysis

To show economic with a production possibilities curve, the frontier would expand away from the origin.

growth

A meeting place or mechanism that allows buyers and sellers of an economic product to come together is called a

market

In the context of the circular flow diagram, businesses sell their goods and services in Multiple choice question. the product market. both the factor and product markets. the factor market.

the product market.

Every decision involves _____, or alternative choices that are given up in favor of the choice selected. Multiple choice question. opportunity costs trade-offs cost-benefit analysis

trade-offs

When economists try to discover why some prices are higher than others, or why some people earn more than others, they are performing which of the four elements that make up the study and scope of economics?

Analysis

Economist like to use the circular flow diagram to show how markets businesses and households.

Blank 1: connect

The diagram called a is a simple model used to represent the various combinations of goods and services that can be produced when all resources are fully employed.

Blank 1: production Blank 2: possibilities Blank 3: curve or frontier

The social movement called is aimed at promoting the interests of consumers.

Consumerism

Because of economic , we depend more on others while others depend more on us.

independence

If production of goods and services takes place at a point inside the production possibilities frontier, then Multiple choice question. the country does not have enough capital goods. the society's labor force is too small. some resources must be idle. the country does not have enough of the "land" factor of production.

some resources must be idle.

The standard of living is Multiple choice question. the quality of life based on the ownership of necessities and luxuries that make life easier. a hypothetical concept that does not exist in the real world. an official government measure used to tell us if we are well off.

the quality of life based on the ownership of necessities and luxuries that make life easier.

Select all that apply The term productivity means that more output could be produced with which of these? Multiple select question. the same input relatively more input less input

the same input less input

One of the factors that drives the need for economic growth is that peoples' wants and needs are virtually

unlimited, infinite, or boundless

Select all that apply How does the study of economics provide a better understanding of the world around us? Multiple select question. Economic issues are tied to everyday events caused by geographic and political elements. Economics provides a framework for analyzing change. Many decisions we vote on have local, national, and international economic consequences. Economics focuses solely on individual behavior and incentives.

Economic issues are tied to everyday events caused by geographic and political elements. Economics provides a framework for analyzing change. Many decisions we vote on have local, national, and international economic consequences.

Select all that apply What does economic interdependence mean? Multiple select question. Events that happen in one part of the world have a global impact. We can usually produce more goods and services with less input. We depend more on others while others depend more on us.

Events that happen in one part of the world have a global impact. We depend more on others while others depend more on us.

Select all that apply What are the advantages of the strategy called incrementalism? Multiple select question. Its many important steps can easily be drawn up in a diagram. It allows you to sample the costs or benefits of a situation before you make a larger commitment. You do not have to gather much data before deciding whether or not to take a big step.

It allows you to sample the costs or benefits of a situation before you make a larger commitment. You do not have to gather much data before deciding whether or not to take a big step.

According to Figure 1.8 titled "Education Pays," the weekly difference in income between high school graduates and college graduates is closest to Multiple choice question. $200 $100 $300 $400

$400

Specialization works best when there is a sufficient of .

Blank 1: division Blank 2: labor

In economics, refers to the "gifts of nature," or natural resources not created by people.

Land

Select all that apply What is the value of markets? Multiple select question. They allow individuals to spend their incomes in the product market. They allow businesses to sell goods and services in the factor market. They allow individuals to earn incomes in the factor market. They allow businesses to hire land, labor, and capital in the factor market.

They allow individuals to spend their incomes in the product market. They allow individuals to earn incomes in the factor market. They allow businesses to hire land, labor, and capital in the factor market.

Select all that apply Why should consumers think in terms of opportunity costs? Multiple select question. Opportunity cost is a better way of measuring the value of society's output on the production possibilities frontier. Wise decision-making involves taking into account all of the consequences of an action. The costs of most decisions cannot always be stated in monetary terms.

Wise decision-making involves taking into account all of the consequences of an action. The costs of most decisions cannot always be stated in monetary terms.

The division of labor is best defined as Multiple choice question. a way of organizing work so that each worker completes a separate part of the overall task. having fewer workers perform many tasks rather than fewer ones. organizing work so that one worker performs many tasks a day rather than fewer ones.

a way of organizing work so that each worker completes a separate part of the overall task.

investing in new capital for economic growth in the future generally means making sacrifices today, or limiting our current

consumption

If someone were to say that "from an economic point of view, we are all in the same boat," they most likely are talking about Multiple choice question. economic interdependence. the paradox of value. opportunity cost.

economic interdependence.

The people in an economy who start new businesses in order to earn profits are called

entrepreneur

A production possibilities curve showing economic growth would be one that with respect to the origin.

expands

After economists analyze a problem, they want to it, or communicate their findings to others. The textbook identifies this action as one of the four components that make up the study and scope of economics

explain

Which items are included in the factor of production called "land"? Multiple select question. fertile fields underground oil deposits deserts sunshine wooden plow

fertile fields sunshine

The opportunity cost of a country having idle resources is that it does not produce on its production possibilities

frontier

The study of economics gives us a framework for analysis that Multiple choice question. can be traced back to the famous Greek writer Herodotus, c. 450 B.C.E. helps us understand how things are organized and how things work. divides the world into orderly and independent segments that can be easily understood.

helps us understand how things are organized and how things work.

The opportunity cost of an economy's idle or unemployed resources is the Multiple choice question. inability to reach a level of production represented by a point on its production possibilities frontier. equivalent amount of TINSTAAFL not produced. monetary value of the income workers did not earn while being unemployed.

inability to reach a level of production represented by a point on its production possibilities frontier.

If all resources are not fully employed, then the production of goods and services will take place the production possibilities curve.

inside

The standard of living is important to us because Multiple choice question. it is the best way to measure the annual value of goods and services produced in our economy. it is a measure of the quality of life that people enjoy. it is an international standard or measure of comfort.

it is a measure of the quality of life that people enjoy.

Consumer rights are more important than ever because Multiple choice question. so many large businesses compete against each other for the individual consumer's expenditures. there are more consumers in the market today than there were a few years ago. it is possible for the individual consumer to get overlooked in a world of giant corporations.

it is possible for the individual consumer to get overlooked in a world of giant corporations.

The factor of production includes people with all of their efforts and skills, with the exception of who are risk-takers in search of profits and who do something new with existing resources

labor entrepreneurs

Select all that apply Human capital includes which of these? Multiple select question. All of the engineers, doctors, and scientists in a country Servers and dishwashers in low-wage service industries Entrepreneurs who provide the driving force in a market economy The discouraged unemployed who have stopped looking for work

All of the engineers, doctors, and scientists in a country Servers and dishwashers in low-wage service industries Entrepreneurs who provide the driving force in a market economy

A market is a meeting place or mechanism that allows to exchange their money for goods and services from

Blank 1: buyers, consumers, or customers Blank 2: sellers, businesses, or producers

Select all that apply An economy cannot produce _______ its production possibilities frontier. Multiple select question. beyond on outside inside

beyond outside

The factor of production called "" includes tools, equipment, machinery, and factories.

capital

An economic is a simplified version of a complex concept expressed in the form of an equation, graph, figure, or diagram.

model

The movement called consumerism arose in the 1960s and led to a list of introduced by presidents John F. Kennedy and Richard Nixon.

Blank 1: consumer Blank 2: rights

A useful economic model that compares expected expenses with expected returns is called - analysis.

Blank 1: cost Blank 2: benefit

If we observed people going to work and earning an income in the context of the circular flow diagram, we would be observing activity in the market.

Blank 1: factor

The economic strategy called simply means to take small, but careful, steps toward your final goal.

Blank 1: incrementalism

In a free enterprise economy, privately owned businesses have the freedom to operate for a profit with government involvement.

Blank 1: limited

Consumers need to consider the opportunity cost, or the best alternative given up, of each decision. Even has an opportunity cost because you cannot necessarily put a monetary value on it.

Blank 1: next or second Blank 2: time

Productivity goes up when specialization takes place because each worker becomes more

Blank 1: productive or efficient

Select all that apply How can a nation achieve economic growth? Multiple select question. Increase the size and improve the skills and abilities of the labor force. Find more or better sources of natural resources. Produce inside the production possibilities frontier. Create more capital goods today so that more output can be produced in the future.

Increase the size and improve the skills and abilities of the labor force. Find more or better sources of natural resources. Create more capital goods today so that more output can be produced in the future.

Select all that apply Which of these describes a cost-benefit analysis? Multiple select question. It is usually expressed as a ratio of costs to benefits or benefits to costs. It can be used to evaluate a single course of action, but not to choose among several. It is decision making approach that incorporates as many future costs and benefits as possible. It considers monetary costs but not the opportunity costs of an action.

It is usually expressed as a ratio of costs to benefits or benefits to costs. It is decision making approach that incorporates as many future costs and benefits as possible.

Economists try to forecast trends and events important to businesses, consumers, and government. What element of the study and scope of economics are they performing?

Prediction

What items are part of the "capital" factor of production? Multiple select question. Tools Factories Equipment Money

Tools Factories Equipment

An economy is not able to produce beyond, or outside of, its production possibilities frontier because Multiple choice question. of TINSTAAFL. resources are already fully employed; there are no additional resources that can be used to further increase production. consumers are not spending enough of their income on the goods currently being produced.

resources are already fully employed; there are no additional resources that can be used to further increase production.

Division of labor makes possible as each worker becomes more efficient at a single task.

Blank 1: specialization

Human capital can be defined as the of people's skills, abilities, health, knowledge, and motivation.

Blank 1: sum or total

Select all that apply What are characteristics of a free enterprise economy? Multiple select question. Government plays a major role in the HOW to produce question. Consumers have a major say in WHAT to produce. Privately owned businesses operate for a profit. The economy is based primarily on markets.

Consumers have a major say in WHAT to produce. Privately owned businesses operate for a profit. The economy is based primarily on markets.

In the context of the circular flow diagram, what type of activity would we observe in the product market? Multiple select question. Consumers spend their income on goods and services. Consumers earn an income when they go to work. Reason: This happens in the factor market. Businesses sell economic products.

Consumers spend their income on goods and services. Businesses sell economic products.

When economists try to communicate their knowledge about the workings of the economy to others, which of the four elements that make up the scope of economics are they performing?

Explanation

Select all that apply What are advantages of a decision-making grid? Multiple select question. It forces you to list all of your available alternatives. It allows you to evaluate each of your alternatives on the basis of the criteria you selected. It requires you to assign an opportunity cost to each alternative. It forces you to list all of the criteria important to you.

It forces you to list all of your available alternatives. It allows you to evaluate each of your alternatives on the basis of the criteria you selected. It forces you to list all of the criteria important to you.

Select all that apply Why does the study of economics lead to a better understanding of politics? Multiple select question. Most of today's political issues have important economic consequences. Economics is always the primary basis on which political parties are founded. Understanding economics helps in understanding the issues politicians debate. Studying economics makes better decision makers in the voting booth.

Most of today's political issues have important economic consequences. Understanding economics helps in understanding the issues politicians debate. Studying economics makes better decision makers in the voting booth.

Select all that apply Which of these statements are true regarding the concept of opportunity cost? Multiple select question. Opportunity cost can be measured in non-monetary units, such as time. Opportunity cost applies to almost all activities. Opportunity cost has only a monetary value. Opportunity cost means more than the price tag of a good or service.

Opportunity cost can be measured in non-monetary units, such as time. Opportunity cost applies to almost all activities. Opportunity cost means more than the price tag of a good or service.

Which descriptions are included in the factor of production called "labor"? Multiple select question. Personnel in the human resources department of a mining factory Workers who retrieve minerals deep in the ground for use in a factory Person or team who invented a new drill bit for a mining factory Mid- or upper-level level managers who run a mining factory

Personnel in the human resources department of a mining factory Workers who retrieve minerals deep in the ground for use in a factory Mid- or upper-level level managers who run a mining factory

Select all that apply Which statement(s) describes entrepreneurs? Multiple select question. They are responsible for much of the change in an economy. They like to start new businesses. They are a special division of the labor factor of production. They succeed by doing something new and different in the economy. They are the fourth factor of production after land, labor, and capital.

They are responsible for much of the change in an economy. They like to start new businesses. They succeed by doing something new and different in the economy. They are the fourth factor of production after land, labor, and capital.

The consumerism movement did more than identify a number of important consumer rights; it recognized that consumers had certain as well.

responsibilities

Select all that apply Why are economic models useful? Multiple select question. They can always be revised if improvements are needed. They can be used even when their underlying assumptions are questionable. They can reduce complex issues to their most basic elements. They can be expressed in terms of diagrams or simple algebraic statements.

They can always be revised if improvements are needed. They can reduce complex issues to their most basic elements. They can be expressed in terms of diagrams or simple algebraic statements.

Select all that apply What is true about people with higher levels of education? Multiple select question. They generally make fewer sacrifices early in life. They usually have lower rates of unemployment. They generally have more attractive jobs. They generally earn more income.

They usually have lower rates of unemployment. They generally have more attractive jobs. They generally earn more income.

Economists are concerned with , or telling us what is going to happen in the future.

predictions

An increase in would occur if we produced more output with the same amount of inputs.

productivity

The relationship between specialization and productivity can be described as one in which Multiple choice question. increases in specialization have no impact on productivity. productivity goes up when specialization increases. specialization goes up when productivity increases.

productivity goes up when specialization increases

The purpose of a production possibilities curve is to Multiple choice question. show how the four factors of production--land, labor, capital, entrepreneurship--can be combined to create output. represent the various combinations of goods and services an economy can produce when all of its resources are fully employed. illustrate the importance of entrepreneurs in the economy.

represent the various combinations of goods and services an economy can produce when all of its resources are fully employed.