Study Guide: Economics Chapter 1

Which of the factors of production involves taking risks and combining resources to produce a good or service?

A nation's wealth is determined by its

Which of the following would result in a change in the production possibilities frontier in the mythical country Alpha?

Consumers are powerful because

When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be a(n)

When a nation's total output increases over time, the nation is experiencing

How many distinct "factors of production" do economists recognize?

A can of soup is an example of a

A car is an example of a

Consumers waiting in long lines for a new product is an example of

Dave gets job at a grocery store, which pays him an hourly wage for his labor. Dave is participating in

Economic growth is most closely associated with an increase in

Which of the following statements best describes the purpose of the productions possibilities curve?

The amount of output in a specific amount of time with a given amount of resources is referred to as

The most comprehensive measure of a nation's wealth is provided by its

In the mythical county Alpha, an entrepreneur has introduced a new technology that makes manufacturing twice as efficient as before. How is this likely to affect the production possibilities frontier?

When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria. These are called:

Which of the following helps determine something's value?

Which of these do economists use to illustrate all conceivable combinations of output?

Opportunity cost refers to

Which of these is most closely associated with "opportunity cost?"

The study of economics involves

Division of labor is practiced because

Economics is best defined as the study of how societies deal with