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econ semester 1 final review

Terms in this set (20)

Which of these do economists use to illustrate combinations of output?
a. A factor of production
b. A production possibilities curve
c. A cost-benefit analysis
b. A production possibilities curve
When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be a(n):
a. Economic model
b. Cost-benefit analysis
c. Production possibility analysis
b. Cost-benefit analysis
Economics is best defined as the study of how societies deal with:
a. The division of labor.
b. The problem of scarcity.
c. The factors of production.
b. The problem of scarcity.
The amount of output in a specific amount of time with a given amount of resources is referred to as:
a. Human capital
b. Investment risk
c. Productivity
c. Productivity
When a nation's total output increases over time, the nation is experiencing:
a. Economic Interdependence
b. TINSTAAFL
c. Economic Growth
c. Economic Growth
When a nation's total output increases over time, the nation is experiencing:
a. Economic Interdependence
b. Economic Growth
c. TINSTAAFL
b. Economic Growth
Opportunity cost refers to:
a. The cost of labor when production is expanded or changed,
b. The cost of NOT expanding production.
c. The value of the next best alternative
c. The value of the next best alternative
A car used to drive around for fun is an example of a:
a. Consumer good.
b. Service
c. Capital good
a. Consumer good.
Consumers are powerful because:
a. Their interests force producers to behave ethically.
b. They drive decisions about what to produce.
c. They have more rights than corporations.
b. They drive decisions about what to produce.
Division of labor is practiced because:
a. It increases efficiency by ensuring that workers become good at specific tasks.
b. Companies do not want workers to talk with one another and separate them.
c. It increases efficiency by ensuring that all workers become good at every task.
a. It increases efficiency by ensuring that workers become good at specific tasks.
Which of the following helps determine something's value?
a. Utility
b. Size
c. Age
a. Utility
A nation's wealth is made up of:
a. All goods and services
b. All intangible items
c. All tangible items
c. All tangible items
The most comprehensive measure of a nation's wealth is provided by its:
a. TINSTAAFL rating
b. Gross domestic product
c. Capital goods
b. Gross domestic product
Which of the factors of production involves raking risks and combining resources to produce a good or service?
a. Entrepreneurs
b. Labor
c. Land
a. Entrepreneurs
The study of economics involves:
a. Studying how things are made, bought, sold, and used.
b. Explaining how incomes are earned and how jobs are created.
c. Explaining how people deal with scarcity.
c. Explaining how people deal with scarcity.
The paradox of value refers to the:
a. The contradiction of what consumers want and what they need.
b. The high value of nonessential items and the low value of essential items.
c. The high value of an essential item and the low value of a nonessential item.
b. The high value of nonessential items and the low value of essential items.
The efficient use of scarce resources leads to an increase in:
a. Investment
b. Productivity
c. Capital
b. Productivity
When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria. These are called:
a. Opportunities
b. Trade-offs
c. Priorities
b. Trade-offs
Economic growth is most closely associated with an increase in:
a. Opportunity costs
b. Economic interdependence
c. Goods and services
c. Goods and services
Consumers waiting in long lines for a new product is an example of:
a. Scarcity
b. Consumer rights
c. Consumer responsibilities
a. Scarcity
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