Economic Questions Flashcard

Front

Which of the following is not one of the three fundamental economic questions?
What to produce,
How to produce,
For whom to produce

Back

When to produce

Front

An entrepreneur is someone who:

Back

Takes risks to start and manage a business.

Front

Scarcity requires people to:

Back

Make choices.

Front

Opportunity cost is best defined as:

Back

The value of the next best alternative foregone.

Front

What is the purpose of a production possibilities curve?

Back

To show maximum possible production combinations.

Front

In a market economy, prices are determined by:

Back

Supply and demand.

Front

The law of demand states that: When demand increases, price decreases. When price decreases, quantity demanded increases. Demand has no relationship with price. Supply decreases when demand increases.

Back

When price decreases, quantity demanded increases.

Front

A shift to the right in the demand curve indicates:

Back

An increase in demand.

Front

Which of the following will likely increase supply? Higher taxes on goods. Lower input costs. Strikes by workers. Bad weather conditions.

Back

Lower input costs.

Front

What is market equilibrium?

Back

The point where supply and demand meet.