Economics Test 1

Front 1

Scarcity

Back 1

Is the problem of limited resources to fill unlimited demands

Front 2

Land is a

Back 2

Natural resource

Front 3

Labor is a

Back 3

Human resource

Front 4

Capital is a

Back 4

Physical resource

Front 5

Starting your own business involves the resource of

Back 5

Entrepreneurship

Front 6

When a company hires workers they are investing in the resource of

Back 6

Human capital (labor)

Front 7

Allocation

Back 7

The distribution of resources

Front 8

Opportunity cost occurs because of

Back 8

Scarcity

Front 9

When a country is producing inside the PPC they are being

Back 9

Inefficient

Front 10

When a country is producing on the PPC they are

Back 10

At maximum efficiency

Front 11

A point outside the PPC is

Back 11

Unobtainable because there are not enough resources to reach that poiny

Front 12

To have a PPC shift to the right a country must

Back 12

Invest in finding better technology or more resources

Front 13

What does the possibilities curve represent

Back 13

Opportunity cost

Front 14

When making a rational decision....

Back 14

Marginal benefit must be greater or equal to than Marginal cost.

Front 15

When a worker only completes the one job they are good at it is called

Back 15

Speciliaztion

Front 16

Who controls what is produced in the command economy

Back 16

The government

Front 17

When an economy exists with some government intervention and many private holdings

Back 17

It is a mixed market economy

Front 18

What is consumer sovereignty?

Back 18

The idea that consumers have all the power in the market economy

Front 19

Where are private property right important

Back 19

In a market economy

Front 20

What is it called when workers have no reason to work harder

Back 20

A command economy giving no incentive for working

Front 21

In a command economy

Back 21

Consumers have limited resources

Front 22

A command economy is know for its goal of

Back 22

Equity in which fairness and equal distribution of income are present

Front 23

Of the broad social goals which are consistent in a market economy

Back 23

Economic freedom

Economic growth

Economic efficiency

Front 24

Of all the broad social goals which are consistent with a command economy

Back 24

Equity

Security

Stability

Front 25

What is the government's main goal in a mixed economy

Back 25

To redistribute income, provide consumer goods, and protect private property rights.

Front 26

The government regulates the economy through

Back 26

Consumer protection policies

Front 27

Productivity is found by..

Back 27

Comparing the input to the output

Output/input

Front 28

Higher education leads to

Back 28

Higher standard of living.

Front 29

Government rules and restrictions

Back 29

Are regulations

Front 30

Regulations are intended to ensure

Back 30

Higher quality products and safety of products

Front 31

Entrepreneurs have the best chance in succeeding in a

Back 31

Market economy

Front 32

Human capital includes investing in

Back 32

Your knowledge

Front 33

The three fundamental questions

Back 33

What to produce

How to produce it

And who to produce It for

Front 34

What is producer rivalry

Back 34

Competition

Front 35

Entrepreneurs start their business in hopes of

Back 35

Making a profit

Front 36

If you move from a point inside your PPC to a point on the PPC

Back 36

Your opportunity cost will be 0