Term
|
Definition
|
|
Term
|
Definition
| Natural gas, coal, trees, water |
|
|
Term
|
Definition
|
|
Term
| using physical capital to save time and money |
|
Definition
| building extra space in a factory to simplify production |
|
|
Term
| What is the difference between a shortage and a scarcity? |
|
Definition
| A shortage can be temporary or long-term, but scarcity always exists. |
|
|
Term
Which of the following are factors of production?
scarcity and shortages
technology and productivity
capital and land
economics and business decisions |
|
Definition
|
|
Term
When a theater owner considers whether to install another row of seating, she is
thinking at the margin.
using human capital.
experiencing a shortage.
underutilizing her resources. |
|
Definition
|
|
Term
Why are goods and services scarce?
Some goods cost more than others.
People want more than they can have.
Greedy people want too many goods.
Resources used to produce them are limited. |
|
Definition
| Resources used to produce them are limited. |
|
|
Term
13. Which would a company do to increase its human capital?
pay for employees’ education
build a company cafeteria
hire more part-time workers
lease cars for employees |
|
Definition
| pay for employees’ education |
|
|
Term
Which of the following are all considered to be land?
dams, bridges, gravel pits, oil wells
corn fields, tractors, computers, rakes
factories, buildings, workers, bees
natural gas, coal, trees, water |
|
Definition
| natural gas, coal, trees, water |
|
|
Term
What physical capital does a woodworker need?
saws and drills
trees and oil
hard work and time
skills and money |
|
Definition
|
|
Term
A production possibilities curve shows the relationship between the production of
two types of factory goods.
farm goods and factory goods.
any two categories of goods.
two types of farm goods. |
|
Definition
| any two categories of goods. |
|
|
Term
The line on a production possibilities curve showing the relative amounts of two types of goods produced using all resources is called the
maximum possible production line.
utilization of resources.
opportunity cost line.
production possibilities frontier |
|
Definition
| production possibilities frontier |
|
|
Term
An economy that is producing the maximum amount of goods and services is considered
growing.
underutilized.
trading off.
efficient. |
|
Definition
|
|
Term
A company that makes baseball caps is underutilizing its resources. What does this mean?
The company is running more efficiently than its competitors.
The company is making caps when it could be making t-shirts instead.
The company is producing fewer caps than it could be.
The company is paying its employees less than it should be. |
|
Definition
| The company is producing fewer caps than it could be. |
|
|
Term
The law of increasing costs means that when an economy increases the production of one item the
opportunity cost goes up.
actual cost goes up but the opportunity cost goes down.
production costs will increase also.
actual cost of making the item goes down |
|
Definition
|
|
Term
A nation’s automakers install new robotic machinery to build cars. As a result, cars take only a day to make, and the factories can produce many more cars than before. This is an example of growth caused by
natural resources.
labor.
technology.
production possibility curves |
|
Definition
|
|
Term
The economic concept of guns or butter means that
a company must decide whether to manufacture guns or butter.
a government can buy unlimited military and civilian goods if it is rich enough.
a person can spend money on either sports equipment or food.
a government must decide to produce more or less military or consumer goods. |
|
Definition
| a government must decide to produce more or less military or consumer goods. |
|
|
