Midterm PFL

Front

Scarcity is defined as “a limited supply of resources and...

Back

Unlimited wants for available resources

Front

Economics is the study of how

Back

People use their scarce resources to satisfy their unlimited wants

Front

Opportunity cost is the value of the _______ that had to be given up if the alternative was chosen

Back

The next best alternative

Front

Because of scarcity, people are forced to make _______ about how to utilize their resources

Back

Choices

Front

Janet wishes to increase the productivity of her art design studio. In order to do so, she is considering buying more technology and also hiring additional employees. As both investments would require considerable capital, Janet wants to make sure she has carefully considered the direction her company should take based on changing trends in technology and the labor force. Which of the following tools might help her make the best decision for her company? A supply graph, A production possibility curve, A demand graph, A circular flow model

Back

A production possibility curve

Front

If a company decided that only producing 4 automobiles a year was unprofitable and instead decided to produce 6 automobiles, how many forklifts would the company lose out on producing at the same time?

Back

9

Front

The process of quantifying the costs and benefits of a decision is known as

Back

Cost-Benefit analysis

Front

If the _________ is __________ than the______, the next step should be taken.

Back

Marginal benefit is greater than the marginal cost.

Front

A production possibilities table lists a choice’s ___________ by summarizing what alternative outputs you can achieve with your inputs.

Back

Opportunity cost

Front

A decrease in the demand for eggs due to changes in consumer tastes, accompanied by a decrease in the supply of eggs as a result of an outbreak of Avian flu, will result in

Back

A decrease in the equilibrium quantity of eggs; the equilibrium price may increase or decrease.