Intro to Economics Review

Front

What is the fundamental problem of every society? Options: labor costs, scarcity, economic interdependence, market fluctuation

Back

scarcity

Front

True or False: Everything that is scarce requires a choice, and these choices always involve a tradeoff.

Back

True

Front

Based on the production possibilities table, which production combination is possible? Options: 28 pizzas and 5 pairs of shoes, 3 pairs of shoes and 23 pizzas, 2 pairs of shoes and 20 pizzas, 4 pairs of shoes and 15 pizzas

Back

2 pairs of shoes and 20 pizzas

Front

If a country is currently producing at point B and decides to produce at point C, what is the opportunity cost for the additional pair of shoes?

Back

3

Front

What is the production possibilities curve?

Back

a graph that shows how much an economy can produce between 2 goods

Front

What is opportunity cost?

Back

the opportunity one has to give up in order to gain something else

Front

Land, Labor, Capital, and Entrepreneurship

Back

Factors of Production

Front

The opportunity cost of increasing production from 7 to 9 trucks is

Back

3 boats

Front

The opportunity cost of increasing production from 4 to 7 boats is

Back

2 trucks

Front

Movement down the PPF curve indicates that the opportunity cost of more capital goods is producing more consumer goods

Back

False