Unit 1 Review

Front

What fundamental issue does the field of economics aim to solve?

Back

Scarcity of resources in relation to unlimited wants and needs.

Front

Opportunity cost

Back

the value of the next best alternative that is forgone when a decision is made.

Front

Which of the following is not typically considered a factor of production by economists? Options: Retail stores, Natural resources, Labor, Capital equipment

Back

Retail stores

Front

Which point represents the least efficient utilization of resources? Options: A, B, C, D, E

Back

D

Front

What does point E on this model represent?

Back

An unattainable use of resources.

Front

Characteristic of a capitalist economic system?

Back

Private ownership of property and businesses.

Front

Which of the following is not typically associated with a socialist economic system?

Back

private ownership of major industries.

Front

What does the concept of 'Laissez Faire' suggest in *An Inquiry Into Nature and Causes of the Wealth of Nations* by Adam Smith?

Back

Individuals pursuing their own self-interest can lead to positive economic outcomes for society.

Front

What is a socialist criticism of capitalism?

Back

Capitalism leads to inequality and exploitation of workers.

Front

What does it mean when a country is described as having a 'mixed economy'?

Back

A mixed economy includes both private and public ownership of resources.