QUIZ COVERAGE

Question 1

Are used as the production’s inputs or components to create the good

Answer 1

RESOURCES

Question 2

is human effort, both physical and mental.

Answer 2

LABOR

Question 3

includes all human creations used to produce goods and services. ​

Answer 3

CAPITAL

Question 4

Consists of factories, tools, machines, computer, buildings, airports, highways, and other human creations used to produce goods and services. ​

Answer 4

Physical Capital ​

Question 5

Consists of the knowledge and skills people acquire to increase their productivity.​

Answer 5

Human Capital ​

Question 6

9 HUMAN CAPITAL

Answer 6

KNOWLEDGE
ABILITIES
SKILLS
EDUCATION
TRAINING
EXPERIENCE
JUDGMENT
WISDOM
CREATIVITY

Question 7

It is something you can see, feel, and touch; it requires scarce resources to produce; and it satisfies human wants.

Answer 7

GOOD

Question 8

It is intangible, yet it uses scarce resources to satisfy human wants.​​

Answer 8

SERVICE

Question 9

means that each individual tries to maximize the expected benefit achieved with a given cost or to minimize the expected cost of achieving a given benefit.​

Answer 9

Rational Self-Interest​

Question 10

studies the performance of the economy as a whole. ​​

Answer 10

Macroeconomics ​

Question 11

is the study of your economic behavior and the economic behavior of others who make choices; it examines individual economic choices and how markets coordinate the choices of various decision-makers.​

Answer 11

Microeconomics

Question 12

A statement that can be proved or disproved by reference to facts.

Answer 12

Positive economic statement

Question 13

A statement that reflects an opinion, which cannot be proved or disproved by reference to the facts.

Answer 13

Normative economic statement

Question 14

FACTORS OF PRODUCTION (4Ms)

Answer 14

MANPOWER
MONEY
MACHINERY
MATERIALS

Question 15

The value of the best alternative is forgone when an item or activity is chosen.​

Answer 15

Opportunity Cost​​

Question 16

A cost that has already been incurred, cannot be recovered, and thus is irrelevant for present and future economic decisions.​

Answer 16

Sunk Cost

Question 17

The individual, firm, region, or country with the lowest opportunity cost of producing a particular good should specialize in that good.

Answer 17

Law of Comparative Advantage​​

Question 18

The ability to make something using fewer resources than other producers use

Answer 18

Absolute Advantage​​

Question 19

The ability to make something at a lower opportunity cost than other producers face

Answer 19

Comparative Advantage​​

Question 20

The direct exchange of one product for another without using money​

Answer 20

Barter​​

Question 21

The focus is on how individuals choose to use their scarce resources to satisfy their unlimited wants or, more specifically, how they specialize based on comparative advantage.

Answer 21

The Economy’s Production Possibilities​​

Question 22

Most of the people consume little of what they produce and produce little of what they consume. Each individual specializes, then exchanges that product for money, which in turn is exchanged for other products.

Answer 22

PRODUCTION

Question 23

The condition that exists when there is no way resources can be reallocated to increase the production of one good without decreasing the production of another; getting the most from available resources.

Answer 23

Efficiency​

Question 24

5 Causes of Inefficient Production Lines​

Answer 24

1. MACHINE QUALITY AND PERFORMANCE ​
2. EMPLOYEE KNOWLEDGE AND PERFORMANCE​
3. PRODUCT QUALITY​
4. SCHEDULE GAPS​
5. LACK OF SUSTAINABLE PROCESSES​

Question 25

3 Economic Decision Makers​

Answer 25

Household
Government
Firm