Economic Systems

The study of how people satisfy their needs and wants is called?

• Government

• Economics

• Supply and Demand

Human capital is considered what?

• All capital owned by individuals, but not by corporations or governments.

• Machinery that meets or exceeds federal safety standards.

• The accumulated skill and knowledge of workers.

What is the difference between scarcity and shortage?

• A shortage is from rising prices; scarcity is from falling prices

• A shortage is a lack of all goods and services; scarcity concerns a single item

• A shortage can be temporary or long-term, but scarcity always exists

• There is no real difference between shortage and scarcity

What is the difference between opportunity cost and trade-off?

• Opportunity cost is all the alternatives that you give up, trade-off is the next best option that you give up

• Trade-off is all the alternatives that you give up, opportunity cost is the next best option that you give up

What is the purpose of a production possibilities curve?

• Show alternative ways to use an economy's resources

• Show how a factory can use its workers in different ways

• Give engineers a new way of deciding how to build manufacturing plants

What does the law of increasing cost relate to in terms of production and price?

• the cost of producing the second item becomes less expensive

• the cost of producing the second one becomes more expensive

• production prices rise much more steeply than do the labor costs

What is the opportunity cost of Oranges moving from point B to point C?

• 15

• 5

• 10

• 20

What is the opportunity cost of sugarcane moving from point D to point C

• 1

• 10

• 15

• 20

What is the types of economy in which the government answers the three economics questions?

• Free Market

• Mixed Economy

• Command

Unemployment payment is an example of what economic goal?

• Efficiency

• Freedom

• Security

• Equity