Podcast
Questions and Answers
What is an example of capital needed to start a tailoring or garment making business?
What is an example of capital needed to start a tailoring or garment making business?
- Building space
- Sewing machines (correct)
- Dressmakers
- Marketing team
In comparison to the U.S. free enterprise system, what is a characteristic of the economy of China?
In comparison to the U.S. free enterprise system, what is a characteristic of the economy of China?
- Manufacturing industries
- Competition (correct)
- Well-paying jobs
- Trade incentives
What term is used to describe the idea that resources are limited in economics?
What term is used to describe the idea that resources are limited in economics?
- Abundance
- Scarcity (correct)
- Sustainability
- Efficiency
Jenny wants to buy a computer and a new television before she leaves for college. She only
has enough money to purchase the computer. Which of the following is the opportunity cost of
purchasing the computer?
Jenny wants to buy a computer and a new television before she leaves for college. She only has enough money to purchase the computer. Which of the following is the opportunity cost of purchasing the computer?
What is a characteristic of the economy of China compared to the U.S. free enterprise system?
What is a characteristic of the economy of China compared to the U.S. free enterprise system?
What term is used to describe the concept of limited resources in economics?
What term is used to describe the concept of limited resources in economics?
What is the opportunity cost of Jenny purchasing the computer?
What is the opportunity cost of Jenny purchasing the computer?
Study Notes
Capital for Tailoring Business
- Initial capital can include sewing machines, fabric, tools, and workspace.
- Additional expenses may cover licensing, marketing, and operating overhead.
Economy of China vs. U.S. Free Enterprise
- China's economy has a significant level of government control compared to the U.S. emphasis on free market principles.
- The Chinese model incorporates state-owned enterprises alongside private ownership.
Limited Resources in Economics
- The term "scarcity" describes the idea that resources available are limited compared to the demand for those resources.
Opportunity Cost
- Opportunity cost refers to the value of the next best alternative foregone when a choice is made.
- In Jenny's case, the opportunity cost of purchasing the computer is the value of the television she must forgo.
Additional Characteristic of China's Economy
- China's economy is characterized by a mix of capitalism and central planning, contrasting sharply with the U.S. system that promotes individual entrepreneurial freedom.
Reiteration of Limited Resources Term
- Scarcity is the economic term that encapsulates the concept of limited resources available for varied uses.
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Description
This quiz tests your understanding of opportunity cost and capital. In the first question, you'll need to identify the opportunity cost of purchasing a computer. In the second question, you'll be asked to identify the capital required to start a tai...
