Flashcards in economics 1-75 Deck (74):
A pizza oven is best described as which type of factor of production?
Flashcards cost $15. Using flashcards results in your not earning $20 in income. What are the accounting, opportunity, and economic costs respectively?
$15. $20, and $35`
Coal is an example of what type of resource?
land resource or natural resource
A wage is the price paid for what type of resource?
A carpenter uses several tools to make a table out of wood. The tools are an example of what type of resource?
The value that is forgone when a choice is made is what type of cost?
Labor resources are sometimes called "_________ capital."
What is the term for goods that are used to produce other goods?
A person who starts a small business is providing what factor of production?
Air is best described as which type of resource?
land resource (or natural resource)
What is a free good?
A non-exclusive, non-limitable good: something that one has unlimited access to that everyone can have at the same time, i.e. air.
The term "natural resource' is another name for which factor of production?
The decision-making involved in using resources is what type of factor of production?
an office building is best characterized as what type of resource
mike is a farmer who wants to plant several crops but has only enough to plant one. mike is facing what economic problem
noah decided to order a hamburger instead of a hotdog, the value of the hamburger is the _____ cost of his decision
land, labor, capital, and entrepreneurship are the four ___ of production
bill gates and demidec have this factor of production in common
the workers on an assembly line represent what factor of production
the letters TANSTAAFL stand for what economic principle
there aint no such thing as a free lunch
which factor of production can best be said to consist of "things used to make other things"
an oil reserve is what type of factor of production
a natural resource
vehicles and buildings are examples of what factor od production
what are the four factors of production
land, labor, capital, entrepreneurship
which factor of production involves organizing the other three factors into production
a river is an example of which factor o production
humans have (unlimited/ limited) wants, but the earth has (unlimited/limited) resources
define opportunity cost
the value of the next best alternative
what is a capital good
a good that helps make other goods later that can be used repeatedly
what do you call a person who takes advantage of free public goods without paying for a them
a free rider
although naturally found, coal as an intermediate good is this type of factor of production
what is the basic economic problem
what is the name of adams smiths most famous book
an inquiry into the nature and causes of the wealth of nations (or just the wealth of nations)
this occurs when there just arent enough hours in the day
one must determine this, or the value of his next best alternative when making a decision
why does scarcity exist
people have unlimited wants and earth has limited resources
what does a production possibilities frontier represent
all the efficient and attainable combinations of the production of two goods
when a producer decides to move from one point on his ppf to another point, what type of decision is he making
a trade off decision
what are two properties of every point along the production possibilities frontier
efficiency and attainability
what are twi qualities of any point between a production possibilities frontier and the origin
all points in this region are attainable but inefficient
what can we infer about two goods when their production possibilities frontier is nearly a straight line
the resources used to produce one good are close, efficient substitutes for the resources used to produce the other
what does the economic cost of a decision include
the explicit costs and the implicit costs
what is a free good
a resource that nonrival and non excludable
on a ppf for guns and butter, what type of goods does butter represent
what law explains the shape of a typical production possibilities frontier
the law of increasing opportunity costs
what is the future consequence of a decision
the result that occurs after the present consequence
which points on the production possibilities frontier have the highest opportunity costs
the endpoints, where all resources are used to produce only one good or the other
what is the intended consequence of a decision
the desured result of a decision, the reason the decision is made
what would cause an economic decision to be difficult to make
if there were only a very small difference between the benefits and the costs of the alternative
what is the unintended consequence of a decision
the unwanted and unexpected result
what is the present consequence of a decision
the result that happened when the decision is made
what type of consequences would a president facing reelection most be concerned with in regards to his actions
the present consequences
what factors of production are human resources
labor and entrepreneurship
which factor of production includes human capital
which two factors of production are non human resource
land and capital
what is a trade off
a decision to give up something in order ot have something else
what is the basic economic problem
in a market economy, who or what answers the question of how to produce
in a mixed market economy, who or what answers the question how to produce
either by a central authority or by market forces
in a command economy, who or what answers the questions how to produce
a central authority
do economists think that people act out of self interest
many production possibilties frontiers compare the production of capital and ____ goods
true or false: self interest is the same as selfishness
self interest is a result of the value of (public/ private) property
when a nation moves from one point on its production possibilities curve to another, what is it doing
making a trade off between two equally viable and efficient production combinations
what does it mean to produce a t a point within the production possibilities curve
not all resources are being used efficiently; the economy could produce more but is not doing so
describe the shape of a production possibility curve for two goods that use the same productive inputs
a straight line
why does the production possibility hcurve have a downward slope
any increase in the production of one good decreases the production of another
Which country is the world's largest exporter of corn?
How does a market price act as a signal to producers
by signaling that profit can be made
Why might two countries trade when they can each produce the same good for the same relative price?
They can probably benefit from trading other goods
What is an absolute advantage
the position of an individual or a nation that can produce a good with the fewest inputs
what basic concept underlies the theory of trade