Applied Economics Midterm Review
21 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which level of economic activity is primarily concerned with the extraction of raw materials?

  • Quaternary
  • Secondary
  • Primary (correct)
  • Tertiary

What is the primary focus of economic investigations?

  • Collecting and analyzing financial data only
  • Conducting market research solely for businesses
  • Understanding various aspects of the economy (correct)
  • Evaluating only consumer preferences

Which type of economic activity involves providing specialized services with professional qualifications?

  • Employment
  • Manufacturing
  • Business
  • Profession (correct)

Which of the following levels of economic activity is related to the distribution of goods and services?

<p>Tertiary (A)</p> Signup and view all the answers

What is not typically involved in economic investigations?

<p>Physical manufacturing processes (A)</p> Signup and view all the answers

What is economics primarily concerned with?

<p>Using scarce resources to satisfy unlimited wants (D)</p> Signup and view all the answers

Which of the following best defines 'labor' as a type of resource?

<p>The work performed by individuals across various jobs (C)</p> Signup and view all the answers

What does 'capital' refer to in the context of economic resources?

<p>The property like machines and tools used for production (C)</p> Signup and view all the answers

Which of the following is NOT a characteristic of resources?

<p>Resources are freely available for all needs (C)</p> Signup and view all the answers

Which of the following best describes 'entrepreneurship'?

<p>The ability to start new businesses and innovate (D)</p> Signup and view all the answers

How is productivity generally defined in economic terms?

<p>The ability to produce more goods efficiently (D)</p> Signup and view all the answers

Which of the following statements regarding natural resources is true?

<p>Natural resources include things found in nature like water and minerals (C)</p> Signup and view all the answers

In which area do economic decisions play a crucial role?

<p>Deciding how to allocate limited resources (C)</p> Signup and view all the answers

What distinguishes goods from services?

<p>Goods are physical items, while services are activities performed for a fee. (C)</p> Signup and view all the answers

Which of the following is NOT a benefit of modern technology?

<p>Increased Scarcity (C)</p> Signup and view all the answers

What does the term 'scarcity' refer to in economics?

<p>The limited availability of resources to satisfy unlimited wants. (C)</p> Signup and view all the answers

What are opportunity costs?

<p>The loss of potential gain from choosing one alternative over another. (B)</p> Signup and view all the answers

Which question is part of the fundamental economic problem?

<p>How shall these goods and services be produced? (A)</p> Signup and view all the answers

What does the economic activity encompass?

<p>Human actions related to production, distribution, exchange, and consumption of goods and services. (D)</p> Signup and view all the answers

What is meant by economic choices?

<p>Making selections about how to allocate scarce resources. (B)</p> Signup and view all the answers

What are unlimited wants in economics?

<p>A person's desires or preferences that exceed what can be satisfied. (C)</p> Signup and view all the answers

Flashcards

What is Economics?

The study of how individuals and societies make choices to satisfy their unlimited needs and wants using limited resources.

What are Resources?

Anything that people can use to produce goods or services, including land, labor, capital, and entrepreneurship.

What is Productivity?

The ability to produce more goods and services in a better and faster way.

What is Entrepreneurship?

The ability to start new businesses, introduce new products, and improve management techniques.

Signup and view all the flashcards

What are Factors of Production?

The use of land, labor, capital, and entrepreneurship to produce goods and services.

Signup and view all the flashcards

What are Natural Resources?

Natural resources found in water and earth, like fish, animals, forests, and minerals.

Signup and view all the flashcards

What is Labor?

All the work done by people, including jobs like bus driving, teaching, and being a doctor.

Signup and view all the flashcards

What is Capital?

Property like machines, buildings, and tools used to create other goods and services.

Signup and view all the flashcards

Production

Creating goods or services using resources like labor, capital, and raw materials.

Signup and view all the flashcards

Consumption

The act of using goods and services to satisfy needs and wants.

Signup and view all the flashcards

Capital Formation

Investing in resources like machinery, buildings, or technology to increase future production.

Signup and view all the flashcards

Primary Economic Activities

Economic activities that involve extracting raw materials and resources from nature.

Signup and view all the flashcards

Secondary Economic Activities

Economic activities that involve processing and transforming raw materials into finished goods.

Signup and view all the flashcards

Scarcity

The limited supply of resources compared to unlimited wants. This creates a need to make choices.

Signup and view all the flashcards

Goods

Goods are physical things that people buy, like clothes, food, or cars.

Signup and view all the flashcards

Services

Services are activities done for others for a fee, such as haircuts, doctor visits, or transportation.

Signup and view all the flashcards

Needs

The basic things needed for survival, such as food, water, and shelter.

Signup and view all the flashcards

Wants

Everything other than the basic needs, things people desire for comfort and enjoyment.

Signup and view all the flashcards

Economic Choice

The process of making decisions about how to use scarce resources to satisfy unlimited wants.

Signup and view all the flashcards

Opportunity Cost

The value of the next best alternative that is given up when making a choice.

Signup and view all the flashcards

Economic Good

Anything, either physical or a service, that provides utility (satisfaction) and can be bought or sold in the market.

Signup and view all the flashcards

Study Notes

Applied Economics Midterm Review

  • Economics: The study of how individuals and nations make choices about using scarce resources to meet needs and wants.

  • Resources (or Factors of Production): Anything people use to create or obtain what they need or want.

    • Natural Resources: Include land, water, minerals, forests, and other elements found in nature.
    • Labor: Human effort, including all types of jobs.
    • Capital: Machinery, buildings, and tools used to create goods and services.
    • Entrepreneurship: The ability to start businesses, introduce new products/methods, and manage existing businesses.
    • Technology: Applying scientific knowledge to improve products, production processes, and services. Benefits include leisure time, skilled workers, efficient use of resources, lower prices, and quality goods/services.

  • Goods: Physical items people buy

  • Services: Activities performed in exchange for payment.

  • Scarcity: There are limited resources to satisfy unlimited wants. This creates choices and trade-offs.

  • Economic Wants: Unlimited desires Individuals have preferences and priorities for satisfying their needs and wants.

  • Economic Needs: Essential things for survival; food ,shelter, clothing...

  • Economic Decisions: Choices to allocate scarce resources to maximize satisfaction of wants.

  • Economic problem: The problem of allocating scarce resources to produce goods or services in order to satisfy the unlimited wants of the people.

  • Fundamental economic problems: What goods and services to produce? How should they be produced? For whom should they be produced?

  • Economic activities: Production, consumption, exchange, and distribution of goods and services

  • Economic Investigations: Research methods for understanding economic phenomena (e.g., surveys, experiments, case studies). Use qualitative or/and quantitative methods to analyze data.

Economic Systems

  • Distribution of goods/services based on resource availability, laws, customs, and traditions in a particular society.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Applied Economics Mid Term 2 Review (PDF)

Description

This quiz focuses on key concepts in Applied Economics, including resources, goods, services, scarcity, and the role of entrepreneurship. It's designed to help students prepare for their midterm exams by reinforcing their understanding of the economic principles that govern decision-making. Review critical terms and their implications in the context of resource allocation.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser