Usad - Usad - Economics

Front 1

In economics, productive resources are assumed to be limited. Which is NOT considered a productive resource by economists?

land; labor; capital; money; natural resources;

Back 1

money

Front 2

Scarcity requires that people make _____.

Back 2

choices

Front 3

The opportunity cost of something is the _____.

Back 3

value of the thing you must give up to get it

Front 4

If John uses all of his resources to produce water, he can produce 1,333 gallons of water per hour. If he uses all of his resources to produce bottles, he can produce 4,000 bottles of water per hour. Measured in bottles per gallon of water, what is John's opportunity cost?

Back 4

0.3

Front 5

If John uses all of his resources to produce water, he can produce 1,333 gallons of water per hour. If he uses all of his resources to produce bottles, he can produce 4,000 bottles of water per hour. John’s opportunity cost of producing bottles is _____.

Back 5

0.333

Front 6

Because resources are not equally productive in all activities, as production of a good increases, _____.

Back 6

most opportunity costs are increasing

Front 7

In economics, another word for a “factor” is _____.

Back 7

input

Front 8

Mr. Peters thought what was good for him as an individual would be good for all others. What term refers to Mr. Peters’ erroneous belief?

Back 8

fallacy of composition

Front 9

Capital resources do NOT include _____.

office buildings; factories; inventories; machines; money;

Back 9

money

Front 10

All points along a production possibilities frontier meet the conditions for _____.

Back 10

production efficiency only

Front 11

For allocative efficiency, _____.

Back 11

marginal costs must equal marginal benefits

Front 12

The United States is a good example of which economic system?

Back 12

mixed

Front 13

Which of these is an example of a group under a command economic system?

Europe in the Middle Ages; the aboriginies of Australia; the US; the Inuit of Canada; most Western European countries

Back 13

Europe in the Middle Ages

Front 14

The economic rivalry among businesses is called _____.

Back 14

competition

Front 15

One of the fundamental principles of economics is that sellers encourage buyers through applying _____.

Back 15

incentives

Front 16

In a market, the use of money reduces dependence on _____.

Back 16

barters

Front 17

Which interaction of buyers and sellers constitutes a market?

desires; assets; voluntary exchanges; comparative advantages; absolute advantages

Back 17

voluntary exchanges

Front 18

A market in which the goods offered for sale differ according to who produced them, but with so many buyers and sellers that each has a negligible impact on market price is considered _____.

Back 18

competitive

Front 19

Which of the following is NOT a feature of the market system?

strong government intervention; flexible economies; profit incentives; entrepreneurial activity; prices set by supply and demand;

Back 19

strong governmnt intervention

Front 20

A double coincidence of want _____.

Back 20

must exist when barter occurs

Front 21

The ability to produce a good or service using fewer resources than other producers is called _____.

Back 21

absolute advantage

Front 22

A producer has a comparative advantage in the production of a good or service if that producer can produce the good or service _____.

Back 22

at a lower opportunity cost than other producers

Front 23

The observation that tariffs deny individuals and nations the benefits of greater productivity and a higher standard of living that results from absolute and comparative advantage is an argument for _____.

Back 23

free trade

Front 24

A duty or tax levied on foreign imports is called a(n) _____.

Back 24

tariff

Front 25

Which is NOT considered a non-tariff barrier to trade?

embargoes; import quotas; export subsidies; tax on import; exchange rate controls;

Back 25

tax on import

Front 26

The production possibilities curve illustrates that each combination of resources used in production has a(n) _____.

Back 26

maximum output

Front 27

The MOST accurate description of when scarcity occurs is _____.

Back 27

whenever wants are greater than the available supply of resources

Front 28

Trade barriers are designed to do all of the following EXCEPT _____.

protect infant industries; reduce competition from foreign firms; save jobs in the domestic economy; decrease prices in domestic markets; reduce foreign imports;

Back 28

decrease prices in domestic markets

Front 29

What measurement is used to determine a nation’s trade balance?

Back 29

net exports

Front 30

What writer first proposed that individuals make decisions that benefit the larger society by acting in ways that serve their own self-interest?

Back 30

Adam Smith