Questions and Answers
In a competitive market, an electronics company releases a smartphone that is much faster than older models. This is an example of:
Which of the following statements about opportunity cost are true? (Check all that apply)
The number of data points that illustrate the proper allocation of resources is:
three
New technology allows producers to use materials from all over the world to manufacture goods. This is known as:
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What are some benefits to private ownership? (Check all that apply)
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Opportunity cost means that something needs to be:
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The factors of production attempt to instill the idea that resources are:
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A pure market economy is sometimes called pure:
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Which of the following would be considered a nonrenewable resource?
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Land is considered a resource because it:
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In a republic, elected officials create:
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"Everyone's rights should be protected" is an argument:
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What are the basic types of resources used by producers? (Check all that apply)
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John has a large apple orchard. He has decided to bake pies and sell them at the local farmer's market. Which best describes John's use of economics?
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What are the cons of a mixed market economy for most citizens? (Check all that apply)
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Study Notes
Economic Concepts
- Competitive markets foster innovation, exemplified by an electronics company's release of a faster smartphone.
- Opportunity cost derives from resource scarcity, influencing both consumers and producers by highlighting trade-offs in economic decisions.
Production Possibilities
- A production possibility curve can effectively illustrate resource allocation, with optimal points often identified in increments such as three data points.
Technological Advances
- New shipping technologies enhance global resource utilization for manufacturing processes.
Private Ownership Advantages
- Private ownership enables businesses to generate profit, facilitates upward economic mobility for individuals, and allows for the ownership of potentially appreciating assets.
Opportunity Cost Definition
- Opportunity cost refers to the concept of giving up one option for another due to limited resources.
Factors of Production
- Resources are categorized as scarce, highlighting the importance of efficient allocation in economics.
Economic Systems Terminology
- A pure market economy is synonymous with capitalism.
Resource Classification
- Petroleum is classified as a nonrenewable resource, distinguishing it from renewable resources like wind and sunlight.
Role of Land in Production
- Land is a fundamental resource because it is essential for producing goods.
Governance in Economic Regulation
- Elected officials in a republic are responsible for creating laws to regulate economic activities.
Protection of Rights
- The argument "Everyone's rights should be protected" supports the need for economic regulation to prevent exploitation.
Types of Resources
- Key resource types for producers include capital, labor, and land, which are essential for production processes.
Resource Utilization Example
- John's decision to use his apple orchard to bake and sell pies exemplifies the use of renewable resources in economic activities.
Challenges in Mixed Market Economies
- Mixed market economies can present challenges, including wealth disparity, difficulties in starting private businesses, lack of guaranteed employment, and potential higher taxes for citizens.
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Description
Prepare for your economics unit test with these flashcards. This set covers key concepts and definitions of economic theories and principles, including opportunity cost and innovation in competitive markets. Test your knowledge and ensure you're ready for the exam!
