Unit 1: Economic Theory

Question 1

goods that are made to last

Answer 1

durable

Question 2

goods ready for consumption (in other words the final good)

Answer 2

consumer good

Question 3

the effect one economic variable has on the other provided all other variables remain the same

Answer 3

ceteris paribus

Question 4

Adam Smith’s name for the regulating impact of supply and demand on free markets

Answer 4

the invisible hand

Question 5

Karl Marx’s name for the underclass workers who were kept from the means of production

Answer 5

proletariat

Question 6

the vast differences in price of certain essential goods and non-essential goods (ex. diamonds being more valuable than water)

Answer 6

paradox of value

Question 7

invention that allowed for the building of video games and our modern tech

Answer 7

microprocessor

Question 8

the accumulation of valuable goods

Answer 8

wealth

Question 9

market that is composed of free market choices and also government planning to prevent negative costs like pollution and monopolies

Answer 9

mixed market

Question 10

a tangible product made for capital or consumption

Answer 10

good

Question 11

what a person gained by making a tradeoff

Answer 11

benefit

Question 12

the 4 factors of production

Answer 12

land, labor, capital, and entrepreneurship

Question 13

symbol of economic downturn for Atari

Answer 13

E. T.

Question 14

a use of resources that cannot be done in the face of scarcity

Answer 14

impossible

Question 15

goods created through central planning and tax spending; roads, schools, parks, etc.

Answer 15

public goods

Question 16

a time when humans are faced with solving economic questions to a lack fo resources

Answer 16

scarcity

Question 17

good/philosophical property supported by Adam Smith but hated by Marx

Answer 17

private goods

Question 18

the study of choices made in scarcity

Answer 18

economics

Question 19

an economic activity that produces human capital like policing, firefighting, and teaching

Answer 19

service

Question 20

central location of economic decisions, investment, and entrepreneurship on the circular flow model

Answer 20

business

Question 21

a graph that shows the possible outcomes of trade offs

Answer 21

production possibilities frontier (PPF)

Question 22

something you desire, but could live without

Answer 22

want

Question 23

strong component of Adam Smith’s philosophies that Marx attempted to eliminate

Answer 23

competition

Question 24

Karl Marx’s name for the wealthy who control the means of production

Answer 24

bourgeoisie

Question 25

Adam Smith’s market of limited government and competition

Answer 25

free market

Question 26

Adam Smith’s belief that government has a limited role in the economy

Answer 26

laissez faire

Question 27

something that is vital to survival

Answer 27

need

Question 28

what a person lost by giving up the other tradeoff

Answer 28

opportunity costs

Question 29

a possible use of resources, but in an underperforming way

Answer 29

inefficient

Question 30

the choices people make in times of scarcity

Answer 30

tradeoffs

Question 31

supplier of labor, demander of consumer goods

Answer 31

household

Question 32

the best use of resources in tradeoffs

Answer 32

efficient

Question 33

Karl Marx’s economic system where all decisions are made through central planning

Answer 33

command system

Question 34

goods used to make final goods

Answer 34

capital goods

Question 35

the worth of a good or service in dollars and cents

Answer 35

value

Question 36

a short term good

Answer 36

nondurable good

Question 37

the usefulness of an economic product

Answer 37

utility