Economics Quiz

Describe 'standard of living' and be able to recognize from a chart examples of a rise or decline in living standards. Standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

What is a production possibilities frontier? Be able to recognize how economic growth is shown on one. The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology.

Which factor of production includes the factories, machinery, and tools needed to produce? The third factor of production is capital. Think of capital as the machinery, tools and buildings humans use to produce goods and services.

What is a production possibilities curve? Be able to read one in order to determine what can be produced when given certain time constraints and resources. A graphical model that represents all of the different combinations of two goods that can be produced; the PPC captures scarcity of resources and opportunity costs.

What factor of production includes the land, climate, and wildlife needed to produce? Land as a factor of production includes the natural resources used to create a good or service. These can be renewable resources like forests or nonrenewable resources like oil, gold or water, says Edward Petersmarck, executive director of practice development at M&O Marketing.

Describe capital goods. goods that are used in producing other goods, rather than being bought by consumers

List the four factors of production.

Describe 'land' in terms of factors of production.

What is the paradox of value?

How is economic growth determined?