Economics Flashcard

Front

Which of the following best defines economics? The study of supply and demand, The study of microeconomics and macroeconomics, The study of how to best allocate scarce resources amongst unlimited wants, The study of how to best allocate resources

Back

The study of how to best allocate scarce resources amongst unlimited wants

Front

Which of the following best defines scarcity?

Back

Insufficiency or smallness of supply; not enough to go around

Front

Which of the following best defines opportunity cost? Options: The cost of producing a good or service, The value of the next best alternative forgone by choosing another alternative, The value of all alternatives forgone by choosing a single alternative, The cost of consuming a good or service

Back

The value of the next best alternative forgone by choosing another alternative

Front

Which of the following best defines factors of production?

Back

Resources used to produce goods and services: land, labor, capital, entrepreneurship

Front

Which of the following best defines an economic system?

Back

The way a society organizes itself to decide what and how much will be produces, the way goods and services will be produced, and how the output will be distributed.

Front

Which of the following best defines a traditional economic system? Options: Political leaders organize production and distribution., Everyone is involved in organizing production and distribution., Cultural customs are used to organize production and distribution., None of the above.

Back

Cultural customs are used to organize production and distribution.

Front

Which of the follow best defines a command economic system?

Back

Political leaders organize production and distribution.

Front

Which of the following best defines a market economic system? Options: Political leaders organize production and distribution., Everyone is involved in organizing production and distribution., Cultural customs are used to organize production and distribution., None of the above

Back

None of the above

Front

Which of the following plays an important role in a market economy? Entrepreneurs, Workers, Consumers, All of the above

Back

All of the above

Front

The most important (but not the only) goal in a market economy is:

Back

Profit