Economics Ch 1 Review

Front

The opportunity cost of increasing production from 4 to 9 boats is

Back

5 trucks

Front

A war breaks out in Ukraine, what happens to the production possibilities curve for the country?

Back

inward

Front

What can cause a production possibilities curve to move outward?

Back

new & faster computers are introduced to the country

Front

What does point Y represent on the PPC?

Back

Unattainable / impossible

Front

What would cause production at Point X?

Back

A recession closes factories and people are out of work.

Front

What is opportunity cost?

Back

the opportunity one has to give up in order to gain something else

Front

An incentive is: the option to select or make a decision when faced with two or more possibilities, a conclusion or resolution reached after consideration, a circumstance that contributes to a result or outcome, a benefit or cost that influences a person's decision

Back

a benefit or cost that influences a person's decision

Front

What is the fundamental problem that there are never enough resources to meet our unlimited wants?

Back

scarcity

Front

What does point B represent? Options: Production that is not possible given the country's resources, Production that underutilizes the country's resources, Production that is possible but not desirable, Production that efficiently uses all of the country's resources

Back

Production that efficiently uses all of the country's resources

Front

Your cost benefit analysis leads you to go eat a donut. What does the law of diminishing marginal utility tell you will eventually happen?

Back

Eventually you will stop eating because the marginal benefit will drop lower than the marginal cost.