Review Flashcard #2

Front

According to the graph, points A-F:

Back

Represent Efficiency.

Front

Which is the most accurate definition of the study of economics? Economics is the study of:

Back

the choices we make because of scarcity.

Front

Which of the following would be an example of Labor, as a factor of production? Coach Tipps volunteering to coach his child’s football team. Mrs. Ellis teaching Economics in Grand Prairie ISD. A horse pulling a cart in order to deliver goods to a remote village. Mrs. Aguero working on a cross-stitch to give to a relative for Christmas.

Back

Mrs. Ellis teaching Economics in Grand Prairie ISD.

Front

How can one best describe the economy operating under a free enterprise system?

Back

Prices change according to changes in the supply and demand for products.

Front

Adam Smith believed that the government should be involved in all the following except:
Providing national security (military),
Protection of private property rights,
Creation of businesses in order to create jobs,
Creation and Maintenance of infrastructure

Back

Creation of businesses in order to create jobs

Front

If the price of a good or service is set below the equilibrium price, what will happen?

Back

The quantity demanded will be greater than the quantity supplied.

Front

According to the graph, what will happen to price and quantity if the government decreases excise taxes on producers of Wiggly Wobbles at the same time that the price of Steady Steamers (a substitute for Wiggly Wobbles) increases?

Back

price stays the same and quantity increases

Front

One of the requirements for a monopoly to exist is that:

Back

there is a unique product with no close substitutes.

Front

The advantages to partnerships include all the following EXCEPT: Shared decision making, Sharing the profits, Relatively easy to start up, Opportunity for specialization

Back

Sharing the profits

Front

In the circular flow model for a free market economy, business firms are: Demanders of resources, Suppliers of resources, Demanders of goods and services, All the above

Back

Demanders of resources