economics 1-75

Question 1

A pizza oven is best described as which type of factor of production?

Answer 1

capital

Question 2

Flashcards cost $15. Using flashcards results in your not earning $20 in income. What are the accounting, opportunity, and economic costs respectively?

Answer 2

$15. $20, and $35`

Question 3

Coal is an example of what type of resource?

Answer 3

land resource or natural resource

Question 4

A wage is the price paid for what type of resource?

Answer 4

Labor

Question 5

A carpenter uses several tools to make a table out of wood. The tools are an example of what type of resource?

Answer 5

capital

Question 6

The value that is forgone when a choice is made is what type of cost?

Answer 6

opportunity cost

Question 7

Labor resources are sometimes called “_________ capital.”

Answer 7

human

Question 8

What is the term for goods that are used to produce other goods?

Answer 8

capital

Question 9

A person who starts a small business is providing what factor of production?

Answer 9

entrepreneurial resources

Question 10

Air is best described as which type of resource?

Answer 10

land resource (or natural resource)

Question 11

What is a free good?

Answer 11

A non-exclusive, non-limitable good: something that one has unlimited access to that everyone can have at the same time, i.e. air.

Question 12

The term “natural resource’ is another name for which factor of production?

Answer 12

land

Question 13

The decision-making involved in using resources is what type of factor of production?

Answer 13

entrepreneurial

Question 14

an office building is best characterized as what type of resource

Answer 14

capital

Question 15

mike is a farmer who wants to plant several crops but has only enough to plant one. mike is facing what economic problem

Answer 15

scarcity

Question 16

noah decided to order a hamburger instead of a hotdog, the value of the hamburger is the _____ cost of his decision

Answer 16

opportunity

Question 17

land, labor, capital, and entrepreneurship are the four ___ of production

Answer 17

factors

Question 18

bill gates and demidec have this factor of production in common

Answer 18

entrepreneurship

Question 19

the workers on an assembly line represent what factor of production

Answer 19

labor resources

Question 20

the letters TANSTAAFL stand for what economic principle

Answer 20

there aint no such thing as a free lunch

Question 21

which factor of production can best be said to consist of “things used to make other things”

Answer 21

capital

Question 22

an oil reserve is what type of factor of production

Answer 22

a natural resource

Question 23

vehicles and buildings are examples of what factor od production

Answer 23

capital

Question 24

what are the four factors of production

Answer 24

land, labor, capital, entrepreneurship

Question 25

which factor of production involves organizing the other three factors into production

Answer 25

entrepreneurship

Question 26

a river is an example of which factor o production

Answer 26

land

Question 27

humans have (unlimited/ limited) wants, but the earth has (unlimited/limited) resources

Answer 27

unlimited, limited

Question 28

define opportunity cost

Answer 28

the value of the next best alternative

Question 29

what is a capital good

Answer 29

a good that helps make other goods later that can be used repeatedly

Question 30

what do you call a person who takes advantage of free public goods without paying for a them

Answer 30

a free rider

Question 31

although naturally found, coal as an intermediate good is this type of factor of production

Answer 31

capital

Question 32

what is the basic economic problem

Answer 32

scarcity

Question 33

what is the name of adams smiths most famous book

Answer 33

an inquiry into the nature and causes of the wealth of nations (or just the wealth of nations)

Question 34

this occurs when there just arent enough hours in the day

Answer 34

scarcity

Question 35

one must determine this, or the value of his next best alternative when making a decision

Answer 35

opportunity cost

Question 36

why does scarcity exist

Answer 36

people have unlimited wants and earth has limited resources

Question 37

what does a production possibilities frontier represent

Answer 37

all the efficient and attainable combinations of the production of two goods

Question 38

when a producer decides to move from one point on his ppf to another point, what type of decision is he making

Answer 38

a trade off decision

Question 39

what are two properties of every point along the production possibilities frontier

Answer 39

efficiency and attainability

Question 40

what are twi qualities of any point between a production possibilities frontier and the origin

Answer 40

all points in this region are attainable but inefficient

Question 41

what can we infer about two goods when their production possibilities frontier is nearly a straight line

Answer 41

the resources used to produce one good are close, efficient substitutes for the resources used to produce the other

Question 42

what does the economic cost of a decision include

Answer 42

the explicit costs and the implicit costs

Question 43

what is a free good

Answer 43

a resource that nonrival and non excludable

Question 44

on a ppf for guns and butter, what type of goods does butter represent

Answer 44

consumer goods

Question 45

what law explains the shape of a typical production possibilities frontier

Answer 45

the law of increasing opportunity costs

Question 46

what is the future consequence of a decision

Answer 46

the result that occurs after the present consequence

Question 47

which points on the production possibilities frontier have the highest opportunity costs

Answer 47

the endpoints, where all resources are used to produce only one good or the other

Question 48

what is the intended consequence of a decision

Answer 48

the desured result of a decision, the reason the decision is made

Question 49

what would cause an economic decision to be difficult to make

Answer 49

if there were only a very small difference between the benefits and the costs of the alternative

Question 50

what is the unintended consequence of a decision

Answer 50

the unwanted and unexpected result

Question 51

what is the present consequence of a decision

Answer 51

the result that happened when the decision is made

Question 52

what type of consequences would a president facing reelection most be concerned with in regards to his actions

Answer 52

the present consequences

Question 53

what factors of production are human resources

Answer 53

labor and entrepreneurship

Question 54

which factor of production includes human capital

Answer 54

labor

Question 55

which two factors of production are non human resource

Answer 55

land and capital

Question 56

what is a trade off

Answer 56

a decision to give up something in order ot have something else

Question 57

what is the basic economic problem

Answer 57

scarcity

Question 58

in a market economy, who or what answers the question of how to produce

Answer 58

market forces

Question 59

in a mixed market economy, who or what answers the question how to produce

Answer 59

either by a central authority or by market forces

Question 60

in a command economy, who or what answers the questions how to produce

Answer 60

a central authority

Question 61

do economists think that people act out of self interest

Answer 61

hell yea

Question 62

many production possibilties frontiers compare the production of capital and ____ goods

Answer 62

consumer

Question 63

true or false: self interest is the same as selfishness

Answer 63

nah son

Question 64

self interest is a result of the value of (public/ private) property

Answer 64

private

Question 65

when a nation moves from one point on its production possibilities curve to another, what is it doing

Answer 65

making a trade off between two equally viable and efficient production combinations

Question 66

what does it mean to produce a t a point within the production possibilities curve

Answer 66

not all resources are being used efficiently; the economy could produce more but is not doing so

Question 67

describe the shape of a production possibility curve for two goods that use the same productive inputs

Answer 67

a straight line

Question 68

why does the production possibility hcurve have a downward slope

Answer 68

any increase in the production of one good decreases the production of another

Question 69

Which country is the world's largest exporter of corn?

Answer 69

the U.S.

Question 70

How does a market price act as a signal to producers

Answer 70

by signaling that profit can be made

Question 71

Why might two countries trade when they can each produce the same good for the same relative price?

Answer 71

They can probably benefit from trading other goods

Question 72

What is an absolute advantage

Answer 72

the position of an individual or a nation that can produce a good with the fewest inputs

Question 73

what basic concept underlies the theory of trade

Answer 73

comparative advantage

Question 74

if price elasticity of demand is equal to zero, then demand is...

Answer 74

THIS IS A TRICK QUESTION. ped can never equal zero