economics topic test 1 micro

Question 1

social science

Answer 1

the study of society and relationships between people

Question 2

positive statement

Answer 2

these are objective statements that are capable of being tested against the facts

Question 3

normative statements

Answer 3

these express an opinion. They are subjective statements that carry value judgements.

Question 4

economic activity

Answer 4

any activity that contributes to the economy

Question 5

land

Answer 5

the raw materials available

Question 6

labour

Answer 6

the workforce (the human capital)

Question 7

capital

Answer 7

this is the man made equipment used in production of other goods and services

Question 8

enterprise

Answer 8

these are individuals who make decisions and take risks

Question 9

factors of production

Answer 9

CELL

Question 10

resources

Answer 10

the factors of production

Question 11

the fundamental economic problem

Answer 11

resources are limited and wants are unlimited

Question 12

scarcity

Answer 12

resources are limited

Question 13

opportunity cost

Answer 13

the next best alternative forgone

Question 14

production possibility diagram/frontier/curve

Answer 14

indicates the maximum possible output that can be achieved given a fixed set of resources

Question 15

resource allocation

Answer 15

the distribution of assets available for production

Question 16

trade offs

Answer 16

where the selection of one choice results in the loss of another

Question 17

unemployment of economic resources

Answer 17

a situation when assets available for production are not being used

Question 18

economic growth

Answer 18

the annual percentage increase in real GDP

Question 19

productive efficiency

Answer 19

any point of the PBB where you cannot produce more of one good without sacrificing the production of another good