What is Economic Study Guide

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

• Scarcity
• 2 boats
• 2 trucks
• 3 boats

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

• Scarcity
• 2 boats
• 2 trucks
• 3 boats

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

• 1 boat
• 2 boats
• 2 trucks
• 3 trucks

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

• Factor Market

• Product Market

• Firms

• Individuals

A person stocks shelves at a grocery store and receives a wage. They have completed an exchange in which part of the circular flow model?

• Individuals

• Businesss

• Factor Market

• Product Market

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circuclar flow model?

• Product Market

• Factor Market

• Firms

• Individuals

What do businesses provide for consumers according to the circular flow model?

• goods and services
• only goods
• only services
• taxes

The circular flow is made up of a continuous interaction of which three groups?

• Workers, government and transportation

• Homeowners, business owners, car dealers

• Factories, farmers, and workers

• Households, government, and businesses

What does point C represent on the Circular Flow diagram?

• Firm

• Factor Market

• Individual

• Product Market

Which of the following is an example of a good?

• tune up

• oil change

• car wash

• car