Chapter 3

Question 1

Production Process

Answer 1

Turns inputs into consumable outputs

Question 2

Consumable Outputs

Answer 2

Goods & Services

Question 3

Resources/ Inputs

Answer 3

• Natural Resources
• Labor
• Capital
• Entrepreneurship

Question 4

Technology

Answer 4

The way that inputs are combined to produce output

Question 5

Make Work Fallacy

Answer 5

The idea that jobs are valuable, whether or not the labor’s production adds value

Question 6

Law of Increasing Opportunity Costs

Answer 6

As more of 1 good is produced, the opportunity costs of that good increases, in terms of the other good that is sacrificed

Question 7

Economic Growth

Answer 7

An expansion of an economy’s productive capabilites

Question 8

Human Capital

Answer 8

ones education and training

Question 9

The invisible Hand

Answer 9

people looking out for their own self-interests inevitably helps others

Question 10

Who is a middleman?

Answer 10

Errbody.

middlemen are valuable because people pay them

Question 11

The Wealth of a country lies in that country’s _____

Answer 11

Consumable goods and services

Question 12

PPF is a straight line if…..

Answer 12

All resources were equally productive

Question 13

PPF is bowed outward because…..

Answer 13

the Law of Increasing Opportunity Costs

Question 14

Butchers, Bakers and Brewers

Answer 14

Labor is NOT done out of generosity or love for someone, but a desire to benefit themselves