17 Questions
In economics, what are the three key features of society that individuals' choices determine?
What gets produced, how it is produced, and who gets what is produced
What are the primary resources that every society must allocate?
Land, labor, and capital
What is the primary concern in economics when discussing choice in a world of scarcity?
Deciding what to produce, how to produce it, and who gets what is produced
How does specialization in production contribute to total output in an economy?
It increases total output by focusing on individual strengths
What is the purpose of a Production Possibility Frontier (PPF) in economics?
To show the maximum possible output combinations of two goods an economy can achieve
Why must every society transform its scarce resources into useful goods and services?
To address the economic problem of scarcity and meet society's needs and wants
What role do land, labor, and capital play in the allocation of resources in an economy?
They are essential resources that must be allocated to produce goods and services
What do points inside the Production Possibility Frontier (PPF) represent?
Inefficiency due to underutilization of resources
How does increasing efficiency impact production possibilities according to the text?
Moves production towards a point on the PPF
What is output efficiency in an economy based on a Production Possibility Frontier (PPF)?
Operating at the 'right' point on the PPF
In economics, when does economic growth occur according to the text?
When a society acquires new resources or learns to produce more with existing resources
What shifts the Production Possibility Frontier (PPF) up and to the right according to the text?
Economic growth
What is the primary cause of inefficiency in resource allocation within an economy?
Misallocation of resources
What must an economy do to be considered efficient?
Produce what people want and operate at the 'right' point on the PPF
What is a key factor that determines economic growth according to the text?
'Acquiring new resources or learning to produce more with existing resources'
'Production Possibility Frontier (PPF)' represents what concept in economics?
'Trade-off between producing different goods with limited resources'
'Command Economy' is defined as an economy where:
'A central government sets output targets, incomes, and prices'
Test your knowledge on Specialization, Exchange, and Ricardo's theory of Comparative Advantage. This quiz covers topics including absolute advantage, benefits of specialization, and reducing costs through free trade.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
