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36 Cards in this Set
- Front
- Back
Choosing to buy a DVD player instead of something else is an example of
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a trade-off.
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Which of the following represents marginal cost?
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the expense of producing one additional unit
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If the total cost of producing an order of jeans is $5,000, and a company produces 1,000 pairs of jeans per order, the average total cost for a pair of jeans is
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$5.00
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The choices all societies must make about production are driven by
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scarcity
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Which of the following is a want?
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vacations
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What does a benefit-cost analysis compare?
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marginal costs and marginal benefits
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If 20 bottles of soda are sold for $2.00 each, what is the total revenue?
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40
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The extra income that results from selling one more unit of the output is the
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marginal revenue
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If the fixed costs of producing dresses are $1,000 and the variable costs are $500, then the total cost is
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1500
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If the variable costs of producing two books are $100, what is the marginal cost of producing one more book?
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50
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Which of the following is a characteristic of a market economy?
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People have the freedom to choose from a variety of products.
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The horizontal axis of a demand curve displays
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quanities |
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A demand curve shifts to the left when |
*the prices of goods drop
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Which factor is most likely to cause the supply of a product to decrease?
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a decrease in consumer demand
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Which factor has the most significant influence on the quantity supplied of any product?
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cost of producing the product
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The vertical axis of a supply curve for a product displays
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prices
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amount of a good that people are willing and able to buy at various prices
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demand
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giving up one alternative good or service for another
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trade-off
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amount of a good that producers are willing and able to sell at various prices
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supply
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something that can be used in making products or services
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resource
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study of how people and nations use limited resources to satisfy unlimited wants
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economics
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not having enough resources to satisfy all wants
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scarcity
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individuals and businesses own all resources and base economic decisions on price
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market economy
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decisions of what, how, and for whom to produce are based on custom
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traditional economy
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private ownership and some government involvement exist in a price-based system
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mixed market economy
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a nation's way of producing the things people need and want
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economic system
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the government makes the major economic decisions
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command economy
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buildings, tools, and equipment that manufacture goods
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capital
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money a business receives from selling its goods or services
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revenue
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slopes upward to the right
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supply curve
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slopes downward to the right
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demand curve
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amount supplied by producers is greater than the amount demanded by consumers
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surplus
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demand and supply are balanced in the market
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equilibrium price
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additional income received from each increase of one unit in sales
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marginal revenue
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way of comparing gains to expenses
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benefit-cost analysis
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quantity demanded is greater than the quantity supplied
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shortage
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