Chapter 1 Study Guide Flashcards
(25 cards)
What is a “guns and butter” decision?
A country must decide whether to use its steel to build a new fighter keys it new sports cars
The resources used to make all goods an services are the
Factor of production
The gov. of a country must make a decision between increasing military spending and subsidizing wheat farmers. What decision is that?
Guns or butter issue
An EX. Of a shortage is limited amounts of
Good available because the trucks carrying it are on strike
A nations automakers install new robotic machinery to build cars. Now, cars take only a day to make, and the factories can produce many more cars than before. This is an example of growth cause by….
Technology
What does a production possibilities frontier show?
The maximum amount that an economy can produce
One example of an entrepreneur is
An artist who runs a business painting murals in office buildings and restaurants
What is a factory building an example of
Physical capital
The purpose of a production possibilities graph is to..
Show alternative ways to use an economy’s resources
Why are all goods and services scarce
All resources are scarce
The lack of which of the following represents a scarcity
Enough workers to finish two jobs because there’s a limited supply of workers
What can a decision-making grid do
Help you determine some of the opportunity cost for your decision
How would you describe an economy that uses its resources to make the greatest possible number of goods and services
Efficient
The opportunity cost of a decision can be examined by using a
Production possibilities graph
A efficient economy is one that
Uses its resources to make the most goods and services
The community of desert Villa traditionally produces a large number of tires and a small amount of kiwifruit. Kiwis are becoming increasingly popular and desertvilla has decide to expand kiwi cultivation. And decrease tire manufacturing according to the law of increasing cost…
The cost of producing Kiwis will increase
Human capital includes
A taxi driver’s knowledge of the city streets
Any resources that are made by humans and used to create other goods and services are called
Capital
What is the opportunity cost of a decision
The most desirable alternative given up for the decision
Which of the following is the kind of decision that can be made at the margin
Whether or not to hire new workers
Which of the following makes someone and entrepreneur
Running a service that hires people to install a sprinkler system in lawns
A country’s production possibilities increase because the available workers become more skilled at using a computer. This is an example of growth caused by
Technology
The government of a country must make a decision between spending money on a hospital or spending the same amount on a border security. What decision is this?
Guns or butter
A company that makes baseball caps is underutilizing its resources what does this mean?
The company is producing fewer caps Than it could be
