Economics Revision Booklet - Quarter #3

Which describes human capital?

• Buildings and tools

• Skills and knowledge

• Land and labor

• Slowing or stopping production

Most economic systems exist on a continuum between

• Mixed and Traditional

• Mixed and Command

• Command and Free Market

• Traditional and Free Market

We must have land, labor, and capital to produce. What do we call these necessities collectively?

• Factors of Production

• Collective Bargaining

• Human Capital

• Physical Capital

A benefit of technology is that it

• Makes certain jobs obsolete.

• Increases a nation's productivity.

• Slows or stops production.

• Decreases a nation's GDP.

Which economic system most values security and safety nets?

• Traditional

• Mixed

• Command

• Free Market

What is another name for the production possibilities curve?

• production possibilities border

• production possibilities frontier

• production possibilities perimeter

• production possibilities edge

How does specialization relate to voluntary exchange?

• When we become overly specialized, exchange ceases to be voluntary.

• There is enough division of labor in one nation to make trading pointless.

• Specialization enables us to make decisions about what is best to produce and what is best to trade.

• Trading weakens us by making us dependent on other nations.

Charlie went to the fair. At the end of the night, he had two ride tokens left. He could use them both to ride the Ferris Wheel one last time, or he could use one to visit the fun house and one to ride the roller coaster. Charlie decided to ride the Ferris Wheel. Which statement BEST describes Charlie's choice?

• Charlie was tired and ready to leave, so one more ride appealed most to him.

• Charlie does not like roller coasters.

• Charlie decided the marginal benefit of spending two tokens on the Ferris Wheel exceeded the marginal cost of giving up two rides.

• Charlie decided the marginal benefit of spending two tokens on the Ferris Wheel did not exceed the marginal cost of giving up two rides.

Which is not considered a need?

• food

• clothing

• shelter

• television

Decision Grids are valuable tools because they help us

• Weigh benefits against opportunity costs.

• Understand maximum production capabilities.

• Realize that trade-offs are unnecessary.

• Solve problems when only two options exist.