Unit 1 Test Review Flashcards
What is it called when there is not enough resources to produce all the things people want?
Scarcity
What do we call a basic need for survival?
Needs
What is a way of expressing a desire?
Wants
What is a physical object that is bought and sold?
Goods
What is an action or activity that one person performs for another?
Service
The factor of production that accounts for a nation’s natural resources.
Land
The effort that a person devotes to a task that a person is paid.
Labor
The human-made resources used to produce other G & S.
Capital
Organizes all the factors of production to create a business.
Entrepreneur
What is the making of alternative choices called in economics?
Trade-offs
What is the next best alternative use of time, money, or resources called?
Opportunity cost
The idea of how much time, money or resources we use in decision making.
Thinking at the margin
What does a production possibility curve show us?
Growth, Efficiency, Costs
The idea that there is no such thing as free lunch deals with which of the following concepts?
Scarcity
Which of the following is not one of the 3 economic questions?
Where to produce?
Transitioning from human workers to robots is an example of which of the following?
How to produce?
The concept that society attempts to maximize its use of scarce resources.
Economic efficiency
The assembly line is an example of which of the following?
Economic Growth & Innovation
The idea that “you can be whatever you want to be” is an example of which of the following?
Economic Freedom
Minimum wage is an example of which of the following concepts?
Economic Equity
The government controls the factors of production in what type of economy?
Centrally planned economy
The economic system where the gov. controls major industries & redistributes wealth.
socialism
The economic system where individuals control the factors of production & make economic choices.
capitalism
The economic system where the government control all economic and political power.
communism
Which of the following characteristics are not apart of modern economics?
Laissez-faire economics
What type of economic system does America have?
Free Enterprise System
What Amendment of the Constitution allows the government to tax income?
16th Amendment
What is the force that encourages people to improve their material well-being?
Profit Motive
What is the role of the consumer in the marketplace?
To buy goods & services
Determine what is produced
Determine how much to produce
What is the negative effect of government regulation? 2 answers
Costs consumers
Costs producers
What two ways does the government interfere in the marketplace?
Educate consumers
Protect health, welfare, & safety of consumers
What is the private ownership of land, capital & labor based on the interaction of supply & demand?
Market Economy
An economy based on ritual, habit or custom.
Traditional Economy
An economy where a central authority makes all economic decisions with limited private property
Command Economy
Which of the following countries implemented “Perestroika” economic reform?
Russia
Which of the following countries implemented “the Great Leap Forward” economic reform?
China
Which economy has few incentives to do better?
Command Economy
Which economy has high degree of consumer satisfaction?
Market Economy
Which economy has small degree of government interference?
Market Economy
Which economy produces low quality goods?
Command Economy
Which economy has a large expensive bureaucracy?
Command Economy
Which economy has privately owned businesses?
Market Economy
Which economy has a high degree of individual freedom?
Market Economy
