Flashcards in unit 1 test Deck (36):
Any resources that are made by humans to create other goods and services are called?
An example of a shortage is limited amounts of
food available because the trucks carrying it are on strike
What does a production possibilities frontier show?
the maximum amount
A country’s production possibilities increase because the available workers become more skilled at using?
What is the struggle among various producers for the consumers business called?
What can cause a production possibilities to move to the right?
A new invention lowers the cost
Why does even a free market economy some kind of government intervention?
to provide for things that the marketplace does not address
Which of the following is not a key economic question?
How should it be ensured that goods and services are paid for?
In what kind economy does the government make all the decisions?
Suppose there is a family in which all the boys expected to become farmers when they are adults just as their fathers and grandfathers did. In which kind of economy do they participate?
You are an entrepreneur with an innovative idea for a new business. In which kind of economy would you have the most opportunity to try to achieve success?
Why do markets exist?
Markets allow people to buy what they need to consume and sell the specialized goods
Improved technology helps create a higher standard of living for future generations by
providing additional goods and services
By the end of the summer, Jason had saved enough money for college, opportunity cost
which of the following is the kind of decision that can be made at the margin?
whether or not to hire new workers
The government of a country must make a decision between spending money on a hospital or border security
guns or butter
How would you describe an economy that uses its resources to make the greatest possible number of goods
what does a production possibilities frontier show
the maximum amount that an economy can provide
what does the process of specialization do for an economy
it makes it more efficient
What is one of the most important advantages of a free market
it encourages growth
What incentive motivates a manufacturer to sell a product
making profits on sales
who is a free market philosopher
Which of the following is characteristic of a traditional?
children tend to have the same jobs as parents
What is the product market?
The market in which households purchase the goods and services that firms produce
The purpose of a production possibilities graph is to?
show alternative ways to use an economies resources
The government of a country must make a decision between increasing military spending and subsidizing wheat farms
guns or butter
Production possibilities frontiers curve when they are charged on a graph because they show
the increasing costs resulting in increasingly less output
Why are all goods and services scarce
all resources are scarce
Opportunity cost of a decision
the most desirable alternative given up for the decision
what is an important advantage of a free market
it offers a wide variety of goods and services
Why does the government use its powers to make sure that businesses disclose so much info to the public?
To make buyers more knowledgeable and safer
A person who consumes a good or service but does not pay for it
a free rider
What is the term for the total value of all goods and services produced in a particular economy
gross domestic product
why are all goods and services scarce?
there’s always a limit on resources