Unit I: Basic Economic Concepts

Front

Which of the following is an example of a capital good and a consumer good? A factory machine and a smartphone, A smartphone and a car, A car and a factory machine, A factory machine and a car

Back

A factory machine and a smartphone

Front

Which of the following lists correctly describes the four factors of production? Land, Labor, Capital, Entrepreneurship; Land, Labor, Money, Management; Resources, Labor, Capital, Innovation; Land, Workforce, Capital, Technology

Back

Land, Labor, Capital, Entrepreneurship

Front

What does the PPC show?

Back

The maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Front

When is the production possibilities curve/frontier linear?

Back

When opportunity costs are constant

Front

When is the production possibilities curve/frontier bowed out?

Back

When resources are not perfectly adaptable for the production of both goods.

Front

All points on the PPC/PPF curve represent what type of production?

Back

Efficient production

Front

A point inside the PPC/PPF represents what type of production?

Back

Inefficient production

Front

A point outside of the PPC/PPF represents what type of production?

Back

Unattainable production

Front

What must occur for the PPC/PPF to expand?

Back

Increase in resources or technology

Front

What is the law of increasing opportunity cost?

Back

The law states that as production of one good increases, the opportunity cost of producing an additional unit rises.