Podcast
Questions and Answers
What is the basic economic problem?
What is the basic economic problem?
- Creating jobs
- Dealing with limited resources (correct)
- Maximizing profits
- Increasing demand
Positive economics is based on?
Positive economics is based on?
Reality
Which of the following is an economic resource?
Which of the following is an economic resource?
- Natural
- Capital
- Human
- All of the above (correct)
Economics is a?
Economics is a?
Opportunity cost can be defined as?
Opportunity cost can be defined as?
When something is good for an individual but not good for society, it follows:
When something is good for an individual but not good for society, it follows:
What does the production possibility curve illustrate?
What does the production possibility curve illustrate?
What does operating at a point inside a bowed-out production possibilities frontier indicate?
What does operating at a point inside a bowed-out production possibilities frontier indicate?
"This automobile crash was caused by bad weather" is an example of the:
"This automobile crash was caused by bad weather" is an example of the:
On a graph, the production possibility curve represents:
On a graph, the production possibility curve represents:
A chicken farm has three inputs: land, labor, and animal feed. The farmer can increase all inputs proportionally. This results in which economic law?
A chicken farm has three inputs: land, labor, and animal feed. The farmer can increase all inputs proportionally. This results in which economic law?
What is not an illustration of the notion of opportunity cost?
What is not an illustration of the notion of opportunity cost?
When a government chooses to build a hospital, those resources are no longer available to build a new highway. This best illustrates the economic concept of?
When a government chooses to build a hospital, those resources are no longer available to build a new highway. This best illustrates the economic concept of?
The opportunity cost of buying a $10 CD is?
The opportunity cost of buying a $10 CD is?
A movement along the production possibility curve will result from?
A movement along the production possibility curve will result from?
Which of the following is an example of a normative statement?
Which of the following is an example of a normative statement?
Every economy must answer the questions: what to produce, how to produce, and...?
Every economy must answer the questions: what to produce, how to produce, and...?
What is human capital?
What is human capital?
The Canadian economy is an example of a _____ economic system.
The Canadian economy is an example of a _____ economic system.
In a command economy, productive resources are?
In a command economy, productive resources are?
Which of the following goals are conflicting?
Which of the following goals are conflicting?
The political economy based on state ownership of productive resources and democratic government is called?
The political economy based on state ownership of productive resources and democratic government is called?
Which political economy makes up the extreme right wing of the political spectrum by combining free market economy with a non-democratic or authoritarian form of government?
Which political economy makes up the extreme right wing of the political spectrum by combining free market economy with a non-democratic or authoritarian form of government?
Which of the following is not a major goal of the Canadian economy today?
Which of the following is not a major goal of the Canadian economy today?
Self-sufficient subsistence is a characteristic of which type of economic system?
Self-sufficient subsistence is a characteristic of which type of economic system?
Study Notes
Basic Economic Principles
- The basic economic problem centers on managing limited resources efficiently.
- Opportunity cost refers to what is sacrificed when making decisions.
Understanding Economics
- Positive economics is grounded in factual reality, distinguishing it from normative statements, which express opinions or recommendations.
- Economics is classified as a social science, focusing on the behaviors and interactions of individuals and societies.
Economic Resources
- Economic resources encompass natural resources, capital, and human contributions—all are vital for production.
- Human capital is defined as the accumulated skills and knowledge possessed by the workforce, influencing productivity.
Production and Opportunity Cost
- The production possibility curve (PPC) illustrates the limits of potential output and indicates trade-offs between different goods.
- A point inside a bowed-out production possibility frontier suggests resources are underutilized, highlighting unemployment.
- A movement along the PPC results from reallocating production resources.
- Scarcity is highlighted when resources used for one goal (like building a hospital) are no longer available for another (like constructing a highway).
Economic Systems and Models
- The Canadian economy exemplifies a mixed economic system, combining elements of free-market and state intervention.
- In a command economy, productive resources are owned and allocated by the government.
- Traditional economic systems are characterized by self-sufficient subsistence practices.
Conflict and Goals in Economics
- In analyzing potential conflicting goals, no options provided conflict (e.g., passing driving school and test, eating healthy, studying for economics).
- The political economy framework based on state ownership and democratic governance is identified as socialism.
- Fascism is defined as the extreme right-wing model that merges free market principles with authoritarian governance.
Growth and Development
- The law of increasing returns to scale explains that increasing inputs proportionally will yield proportionally greater outputs.
- A growing economy can simultaneously produce more of both goods without a clear opportunity cost implication.
Key Economic Questions
- Every economy must address three core questions: what to produce, how to produce, and for whom to produce.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Review the foundational concepts from Chapters 1 and 2 of your Economics course with these flashcards. Covering basic definitions, economic resources, and the principles of positive economics, this quiz will help reinforce your understanding of economic principles. Perfect for exam preparation and quick revisions.
