Basic Econ Concepts economies

the next best thing you give up when you make a choice

• Tradeoff

• Opportunity Cost

• Scarcity

• Utility

In economics, this means satisfaction

• Human Capital

• Opportunity Cost

• Essential

• Utility

Four Factors of Production

• Land, Labor, Capital Entrepreneur

• Land-Labor-Utility-Scarcity

• Labor, Capital, Productivity, Entrepreneurship

• Land, Productivity, Capital, Utility

The basic economic questions every society must answer

• What to produce, how to produce, who to produce for

• What to produce, how to produce, when to produce

• When to produce, where to produce, how to produce

• What to produce, when to produce, who to produce for

Law of diminishing Marginal Utility describes

• The amount of satisfaction you receive from eating pizza

• The more you consume a good or service the more satisfaction you get from it

• The more you consume a good or service the less satisfaction you get from it

• Going to Disneyland for more than one day

The production possibilities curve is an illustration of what?

• Opportunity costs and trade-offs, scarcity

• Only opportunity costs

• Only trade-offs

• only scarcity

Individuals control the means of production in this economy

• Market

• Traditional

• Command

• Communism

What can cause a production possibilities curve to move to the right?

• thousands of people move out of the country
• an epidemic kills thousands of young men and women
• a new invention lowers the cost of production
• the population is growing increasingly old

In this economy, decisions about production and consumption are based on tradition

• Command

• Mixed

• Traditional

• Market

In a Command Economy, decisions about what to produce and who for are answered by

• People

• Government

• People & Government

• Tradition