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Flashcards in economics 1-75 Deck (74):
1

A pizza oven is best described as which type of factor of production?

capital

2

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`

3

Coal is an example of what type of resource?

land resource or natural resource

4

A wage is the price paid for what type of resource?

Labor

5

A carpenter uses several tools to make a table out of wood. The tools are an example of what type of resource?

capital

6

The value that is forgone when a choice is made is what type of cost?

opportunity cost

7

Labor resources are sometimes called "_________ capital."

human

8

What is the term for goods that are used to produce other goods?

capital

9

A person who starts a small business is providing what factor of production?

entrepreneurial resources

10

Air is best described as which type of resource?

land resource (or natural resource)

11

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.

12

The term "natural resource' is another name for which factor of production?

land

13

The decision-making involved in using resources is what type of factor of production?

entrepreneurial

14

an office building is best characterized as what type of resource

capital

15

mike is a farmer who wants to plant several crops but has only enough to plant one. mike is facing what economic problem

scarcity

16

noah decided to order a hamburger instead of a hotdog, the value of the hamburger is the _____ cost of his decision

opportunity

17

land, labor, capital, and entrepreneurship are the four ___ of production

factors

18

bill gates and demidec have this factor of production in common

entrepreneurship

19

the workers on an assembly line represent what factor of production

labor resources

20

the letters TANSTAAFL stand for what economic principle

there aint no such thing as a free lunch

21

which factor of production can best be said to consist of "things used to make other things"

capital

22

an oil reserve is what type of factor of production

a natural resource

23

vehicles and buildings are examples of what factor od production

capital

24

what are the four factors of production

land, labor, capital, entrepreneurship

25

which factor of production involves organizing the other three factors into production

entrepreneurship

26

a river is an example of which factor o production

land

27

humans have (unlimited/ limited) wants, but the earth has (unlimited/limited) resources

unlimited, limited

28

define opportunity cost

the value of the next best alternative

29

what is a capital good

a good that helps make other goods later that can be used repeatedly

30

what do you call a person who takes advantage of free public goods without paying for a them

a free rider

31

although naturally found, coal as an intermediate good is this type of factor of production

capital

32

what is the basic economic problem

scarcity

33

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)

34

this occurs when there just arent enough hours in the day

scarcity

35

one must determine this, or the value of his next best alternative when making a decision

opportunity cost

36

why does scarcity exist

people have unlimited wants and earth has limited resources

37

what does a production possibilities frontier represent

all the efficient and attainable combinations of the production of two goods

38

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

39

what are two properties of every point along the production possibilities frontier

efficiency and attainability

40

what are twi qualities of any point between a production possibilities frontier and the origin

all points in this region are attainable but inefficient

41

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

42

what does the economic cost of a decision include

the explicit costs and the implicit costs

43

what is a free good

a resource that nonrival and non excludable

44

on a ppf for guns and butter, what type of goods does butter represent

consumer goods

45

what law explains the shape of a typical production possibilities frontier

the law of increasing opportunity costs

46

what is the future consequence of a decision

the result that occurs after the present consequence

47

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

48

what is the intended consequence of a decision

the desured result of a decision, the reason the decision is made

49

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

50

what is the unintended consequence of a decision

the unwanted and unexpected result

51

what is the present consequence of a decision

the result that happened when the decision is made

52

what type of consequences would a president facing reelection most be concerned with in regards to his actions

the present consequences

53

what factors of production are human resources

labor and entrepreneurship

54

which factor of production includes human capital

labor

55

which two factors of production are non human resource

land and capital

56

what is a trade off

a decision to give up something in order ot have something else

57

what is the basic economic problem

scarcity

58

in a market economy, who or what answers the question of how to produce

market forces

59

in a mixed market economy, who or what answers the question how to produce

either by a central authority or by market forces

60

in a command economy, who or what answers the questions how to produce

a central authority

61

do economists think that people act out of self interest

hell yea

62

many production possibilties frontiers compare the production of capital and ____ goods

consumer

63

true or false: self interest is the same as selfishness

nah son

64

self interest is a result of the value of (public/ private) property

private

65

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

66

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

67

describe the shape of a production possibility curve for two goods that use the same productive inputs

a straight line

68

why does the production possibility hcurve have a downward slope

any increase in the production of one good decreases the production of another

69

Which country is the world's largest exporter of corn?

the U.S.

70

How does a market price act as a signal to producers

by signaling that profit can be made

71

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

72

What is an absolute advantage

the position of an individual or a nation that can produce a good with the fewest inputs

73

what basic concept underlies the theory of trade

comparative advantage

74

if price elasticity of demand is equal to zero, then demand is...

THIS IS A TRICK QUESTION. ped can never equal zero