Economics Final Review

Front

A fundamental problem of economics is trying to solve how to satisfy unlimited wants with limited resources. True or False?

Back

True

Front

Where are the factors of production bought and sold?

Back

factor markets

Front

What type of situation describes the fact that some necessities, like water, have a very low monetary value, while nonnecessities, such as diamonds, have a very high value?

Back

paradox of value

Front

What do you need to produce other goods and services? Options: consumer goods, capital goods, nondurable goods, Gross Domestic Product (GDP)

Back

capital goods

Front

Gross Domestic Product (GDP) refers to the dollar value of all final goods, services, and structures produced anywhere in a single year for a country.

Back

False

Front

Who is the risk-taker or someone who starts new businesses?

Back

entrepreneurs

Front

What would cause a production possibilities frontier to move outward? Options: opportunity cost, cost of idle resources, economic growth, trade-offs

Back

economic growth

Front

If production increases, what would happen to the point on a production possibilities frontier?

Back

outside to a new line

Front

_____ refers to the next best alternative or what you've given up.

Back

Opportunity Cost

Front

_____ refer to all the other alternative choices.

Back

Trade-offs