Economics Final

What is Economics?

• The study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources
• Employment, gross domestic product, inflation, economic growth, and the distribution of income
• Deals with behavior and decision making by small units, such as individuals and firms
• A rise in the general level of prices occurs, workers need more money to pay for good clothing and shelter

What is Scarcity?

• Giving something up to have something else
• Extra cost of producing one additional unit of production
• The condition that results from society not having enough resources to produce all the things people would like to have
• A rise in the general level of prices occurs, workers need more money to pay for good clothing and shelter

What are the 4 Factors of Production?

• Land, capital, money, entrepreneurs
• Land, capital, labor, entrepreneurs
• Capital, money, supply, demand
• Labor, capital, supply, demand

What would be considered Land?

• Anything from the earth
• The space we occupy
• Natural resources
• All of the above

How would you describe Capital?

• The natural resources used in the production of goods
• The tools, machinery, and factories used in the production of goods
• Just the tools used to make goods
• The location of the main body of government of a society.

What is Labor?

• People with all of the efforts, abilities, and skills
• The people who are for hire for work
• People with all of the workmanship, skills, and work
• The act of performing work at any given time

An Entrepreneur is ...

• A risk taker in search of profits who's initial investment must be returned
• A investor in search of profits who does something new with existing resources
• A investor in search of profits who's initial investment must be returned
• A risk taker in search of profits who does something new with existing resources

How would you describe Opportunity Cost?

• The cost associated with any opportunity
• Giving the cost in order to have the opportunity
• The cost required in order to succeed
• Giving something up to have something else

What is a PPC?

• Possible Production Curve
• Production Possibilities Curve
• Probable Projection Curve
• Projected Possibilities Frontier

What does point B represent?

• Production at greater than the country's minimum potential
• Production is less than the country's minimum potential
• Production is greater than the country's maximum potential
• Production at the country's maximum potential