Economics Flashcards on Key Questions

Questions and Answers

One of the three main questions of economics addresses who should produce goods and services.

receive goods and services.

Which of the following is an example of a labor resource?

A city's population (correct)

Water held in a reservoir

Electricity produced by a nearby power plant

Money available to be invested in a company

Which of the following best illustrates the importance of addressing the three questions of economics?

Businesses need to limit production.

Businesses need to use limited resources wisely. (correct)

People's desires and needs are always changing.

Traditional methods of production are outdated.

One of the main questions of economics involves deciding upon the method for creating goods and services.

Creating goods and services. Signup and view all the answers

Fantastic Snack Company has spent months developing a new type of snack chip, but the chips are not selling. Which of the following is the most likely mistake Fantastic Snack Company made?

Not meeting the wants of its consumers Signup and view all the answers

Which of the following will be accomplished by efficient allocations of the factors of production?

Fulfilling many needs and wants of society Signup and view all the answers

In the scenario, which of the factors of production will the clothing company need to address most closely when making its decision to expand?

Capital Signup and view all the answers

The questions of economics address which of the following? Check all that apply.

What Signup and view all the answers

Which of the following is an example of a land resource?

Cow Signup and view all the answers

Resources needed to provide goods or services are called?

factors of production. Signup and view all the answers

One of the three economic questions deals with deciding?

what goods and services should be produced. Signup and view all the answers

The three questions of economics best help in making decisions about?

production. Signup and view all the answers

Study Notes

Three Questions of Economics

Addresses who should receive goods and services.
Focuses on the importance of wisely using limited resources.
Involves deciding what goods and services should be produced.

Labor and Resource Examples

Labor resource example: a city's population.
Land resource example: a cow (considered a natural resource).
Resources required for providing goods or services are known as factors of production.

Business Decisions and Production

Efficient allocation of production factors leads to fulfilling society's needs and wants.
Not meeting consumer wants can result in poor sales, as seen with Fantastic Snack Company.
Companies expanding into new areas must consider capital, especially in urban regions with limited resources.

Economic Concepts and Findings

The three questions can be summarized as:
- Who should produce?
- What should be produced?
- How will goods and services be distributed?
Important considerations in economics include understanding the changing desires and needs of people and the allocation of resources.

Factors of Production

Key factors are:
- Land
- Labor
- Capital
Production must consider the combination of these factors to enhance economic effectiveness and success.

Description

Test your knowledge of the three main questions of economics with these flashcards. Explore essential concepts such as production, distribution, and resources through engaging prompts. Perfect for students looking to reinforce their understanding of fundamental economic principles.