Chapter 2: Basic Economic Problems, Economic Systems, Economic Models (Circular Flow Model and Product Possibility Frontier)

Question 1

a common difficulty that an economy faces

Answer 1

The allocation of resources

Question 2

This problem is about making judgments about which commodities to produce and in what quantities they should be produced.

Answer 2

What to produce?

Question 3

this issue concerns the techniques that must be adopted and used in the creation of goods and services and the production of goods and services.

Answer 3

How to produce?

Question 4

What resources are short in supply?

Answer 4

Land, labor, machines, capital equipment, tools, and natural resources

Question 5

mechanization and mass production, Creation of goods

Answer 5

Capital Intensive

Question 6

services are generated using blank processes due to the high degree of client engagement.

Answer 6

Labor-intensive

Question 7

one of the most pressing economic issues is determining which goods should be produced for which segments of society.

Answer 7

For whom to produce?

Question 8

Blank are in demand from all segments of society

Answer 8

Essential goods and services

Question 9

Blank are only desired by a select few

Answer 9

luxury goods and services

Question 10

Economic selections of goods and services are based on

Answer 10

popular interest and preferences

Question 11

the central concern of an economy also includes Blank and Blank

Answer 11

efficient resource utilization and resource development

Question 12

it is described what is used in production process to create output or finished goods or services.

Answer 12

Factors of Production

Question 13

the quantity of the output is determined by the amount of various of inputs that are used.

Answer 13

Production function

Question 14

Adam Smith, David Ricardo and Karl Marx, classified Blank, blank, and blank as components of production.

Answer 14

land, labor and capital

Question 15

the two most important inputs for processes and earnings today.

Answer 15

Capital and Labor

Question 16

Source of all materials and food whether in liquid, solid, gaseous form, in or above the earth.

Answer 16

Land

Question 17

Examples of Land as a factor of production

Answer 17

Agricultural land to commercial real estate
or
From a specific piece of land oil and gold

Question 18

Farmers boost the blank and blank of land by cultivating crops on it.

Answer 18

value and utility

Question 19

Land was responsible for providing blank for a group of early French economists known as the blank, who predates the classical political economists.

Answer 19

economic value

Physiocrats

Question 20

The most important component of any real estate venture

Answer 20

Land

Question 21

Available physical and mental talents of the people who have to produce goods and services

Answer 21

Labor

Question 22

The work put in by an individual to bring a product or service to market.

Answer 22

Labor

Question 23

It is a term used in the software industry to describe the effort done by project managers and developers to create the final product, even an artist engaged in the creation of art.

Answer 23

Labor

Question 24

Workers in the production line are compensated for their blank and blank with pay that are determined by their blank and blank.

Answer 24

time and effort

skill and training

Question 25

Labor performed by an unskilled and untrained individual is usually blank at a blank.

Answer 25

compensated at a low rate

Question 26

Refers to skilled and trained personnel who are paid more because they bring more to the task than their physical capacity.

Answer 26

Human capital

Question 27

Tangible physical good that a person or society creates in the expectation that its use will improve or increase future production

Answer 27

Capital

Question 28

Capital is a blank for modern mainstream neoclassical economist

Answer 28

a major driver of value

Question 29

Refers to the purchase of commodities manufactured with money in manufacturing as an element of production.

Answer 29

Capital

Question 30

Examples of Capital according to the Discussion

Answer 30

Tractor, office desks, and chairs

Question 31

Money is not a blank but a resource because it is not used directly in the creation of a good or service.

Answer 31

factor of production | a resource

Question 32

it helps production processes by allowing entrepreneurs and business owners to purchase capital goods or land as well as pay workers.

Answer 32

Money

Question 33

People are combing the other three factors of production to create some products or services to sell

Answer 33

Entrepreneurship

Question 34

Countries are building the blank and blank to make it simpler for entrepreneurs to start businesses since entrepreneurs are critical for blank.

Answer 34

required framework and policies | economic growth

Question 35

Some production parameters may be blank than others depending on the situation.

Answer 35

more significant

Question 36

Significant production parameters for a software corporation

Answer 36

Labor

Question 37

Significant production parameters for a corporation that creates and rents out office space

Answer 37

Land and Capital

Question 38

It is made up of a variety of organizations, agencies, companies, decision-making processes, and consumption patterns that make up a community economic structure around the world

Answer 38

Economic System

Question 39

What are regulated by economic systems?

Answer 39

factors of production such as land, capital, labor, and physical resources

Question 40

A type of economic System that economic decisions are made with great influence from the past.

Answer 40

Traditional Economy

Question 41

In a traditional economy, the exchange of goods, services and labor, all of which follow well-established patterns, is heavily reliant on individuals with little blank or blank.

Answer 41

division of Labor or specialization

Question 42

the most fundamental and oldest of the four types of economic system

Answer 42

Traditional Economy

Question 43

Most widespread in rural areas of second and third world countries where blank and blank are the mainstays of the economy

Answer 43

farming and other traditional income-generating industries

Question 44

An economic system that is affected by traditions and ideas and focuses on the fundamentals of products, services, and work.

Answer 44

Traditional Economy

Question 45

Traditional economy has characteristics such as ownership of blank, the leader makes decisions about blank, which is the blank of the economy, blank govern the production, distribution, and use of economic resources, not receptive to blank, the economy is only its blank with culture and religion taking precedence, and blank are utilized to collect blank for manufacturing.

Answer 45

``` communal land Agricultural production Foundation customary customs new technologies third priority minds raw materials ```

Question 46

An economic system that factors of production are owned and managed by the state. Decisions in answering the basic economic problems are planned, done, and dictated by the government.

Answer 46

Command Economy

Question 47

Also known as Planned Economy

Answer 47

Command Economy

Question 48

An economic system that has is a powerful centralized authority, usually the government in charge of a large section of the economy

Answer 48

Command Economy

Question 49

If a country's economy has a blank, it's likely that it'll lean toward a command economy.

Answer 49

lot of resources | command economy

Question 50

In a command economy, centralized control is ideal for valuable resources like blank or blank. Other less essential areas of the economy such as blank, are blank.

Answer 50

gold or oil | agriculture, are regulated by the people

Question 51

An economic system that individual consumers and businesses interact to solve the economic problem.

Answer 51

Market Economy

Question 52

Also known as Free Market Economy

Answer 52

Market Economy

Question 53

In a Market Economy, the blank has little control over resources and avoids interfering with vital economic sectors. Rather, people in the blank are the sources of regulation.

Answer 53

government | supply-demand connection

Question 54

An economic system that is influenced by demand and supply forces

Answer 54

Market Economy

Question 55

An economic system that combines two economic systems

Answer 55

Mixed Economy

Question 56

Also known as Dual Systems

Answer 56

Mixed Economy

Question 57

A mixed economy is a blank that is blank

Answer 57

A market system | heavily regulated

Question 58

shows the basic economic relationships within a market economy

Answer 58

Circular Flow Model

Question 59

The Circular Flow Model exemplifies the balance that exists in our economy between blank and blank.

Answer 59

injections and leakages

Question 60

The Circular Flow Model shows the blank, blank, and blank.

Answer 60

households, corporations, and governments

Question 61

We also have the banking system which enables blank and as we'll see in a moment, aids in the productive conversion of blank into blank to develop the economy.

Answer 61

money exchange savings investment

Question 62

used to buy products and services in the economy circular cycle.

Answer 62

Money

Question 63

In the economy, blank and blank flow in one direction, while black flows in the opposite direction.

Answer 63

goods and services | money

Question 64

What are the prices that correspond to land, labor, capital, and entrepreneurship as production elements?

Answer 64

Rent, labor, and profit

Question 65

Households blank from businesses and blank in exchange for money

Answer 65

purchase goods and services | sell their labor, land, and capital

Question 66

Businesses generate money in profits by blank and blank to households and pay blank to households in exchange for the use of factors of production.

Answer 66

selling goods and services | wages, interest, and profits

Question 67

levied on individuals and corporations by governments in order to offer certain benefits to everyone

Answer 67

Taxes

Question 68

Main players of the economy

Answer 68

individuals and businesses

Question 69

The circular flow model’s main goal

Answer 69

to figure out how money circulates in a given economy

Question 70

circular flow paradigm begins with the blank which spends money and ends with the blank, which creates goods

Answer 70

consumer sector | producer sector

Question 71

a curve and business analysis that depicts the variations in the amounts that can be produced of two products if they both rely on the same finite resource.

Answer 71

Production Possibility Frontier

Question 72

Production Possibility Frontier can be used to demonstrate that the country's economy operates at its blank level when it produces only what it is blank to create and trades for the blank of what it requires.

Answer 72

most efficient best qualified remainder

Question 73

Production Possibility Frontier is also known as?

Answer 73

production possibility curve

Question 74

It is shown visually as an arc with one commodity on the X-axis and the other on the Y-axis

Answer 74

production possibility curve or Production Possibility Frontier

Question 75

Points within the curve are considered blank, whereas points outside the curve are blank that cannot be achieved with their current resources.

Answer 75

inefficient resource utilization | goals of the economy

Question 76

The most efficient number of the two commodities that can be produced with given resources is shown?

Answer 76

along the curve

Question 77

Moving upward or downward along the curve would require the economy to blank of one of the commodities and blank the other.

Answer 77

reduce the production | increase