Economics Final Review

What is human capital?

• Division of work into separate tasks

• Work performed for someone

• The value of a product

• The sum of people's skills and abilities

The purpose of a production possibilities graph (PPC) is to

• show the various combinations of goods that can be produced

• make it possible to make less goods than what is efficient

• keep an economy from having non productive workers

• require companies to disclose information to consumers

In truth, all economies today are

• Market

• Command

• Traditional

• Mixed

In which economic system do individuals answer the basic economic questions?

• market economy

• command economy

• mixed economy

• traditional economy

What is the opportunity cost of a decision?

• The series of alternative decision that could have been made

• The best possible way the question could have been decided

• The different ways that a different person might have made the decision

• The value of the next alternative that is given up to obtain the preferred item

The alternatives that must be given up when a choice is made are________

• goods

• trade-offs

• absolute advantages

• human capital

The combination of organizational abilities and risk taking involved in starting a new business or creating a new product is____________

• technology

• utility

• entrepreneurship

• productivity

The economic system in which the basic economic questions are answered by government central planners is called a ____________

• market economy

• command economy

• mixed economy

• traditional economy

What type of economy does the U.S. have?

• Socialist

• Communist

• Mixed Market

• Mixed Socialism

The buildings, structures, machinery, and tools used in the production process are called

• consumer goods

• capital goods

• natural resources

• human resources