Economics Final Review

Front

What is human capital?

Back

The sum of people's skills and abilities

Front

The purpose of a production possibilities graph (PPC) is to

Back

show the various combinations of goods that can be produced

Front

In truth, all economies today are

Back

Mixed

Front

In which economic system do individuals answer the basic economic questions?

Back

market economy

Front

What is the opportunity cost of a decision?

Back

The value of the next alternative that is given up to obtain the preferred item

Front

The alternatives that must be given up when a choice is made are________

Back

trade-offs

Front

The combination of organizational abilities and risk taking involved in starting a new business or creating a new product is____________

Back

entrepreneurship

Front

The economic system in which the basic economic questions are answered by government central planners is called a ____________

Back

command economy

Front

What type of economy does the U.S. have?

Back

Mixed Market

Front

The buildings, structures, machinery, and tools used in the production process are called

Back

capital goods