economics (unit 2)

the rules of government distribution do not eliminate competition
shortage and scarcity mean the same thing
all goods and services are scarce
scarcity always exists
market competition allows people to have all that they want
the allocation rule of “first come-first served” promotes productive cooperation
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an important function of government is to outlaw the use rule of force
competition through force remains common between governments in the form of wars
in the United States economy, few resources, goods, and services are allocated through markets
market competition doesn’t eliminate scarcity
which of the following items is a want?
a new entertainment system
which of the following was known as the father of economics?
adam smith
which of the follow terms did adam smith use to discuss the motivations of producers in the market place?
the invisible hand
the study of economics involves looking at
unlimited wants and limited resources
according to the economic theories promoted by thomas malthus, providing charity to those in need would
be self-defeating to the betterment of society
all of the other options that are given up when a business makes one choice over another are called
the cost of an economic decision that is the most attractive option that is given up because one choice was made over another. what is this called?
opportunity cost
a business chooses to build army tanks rather than butter-making machines, bread machines, or candy vending machines. what are these other alternatives called
what is the main reason people make economic choices?
their resources are limited
which of the following cannot be shown on a production possibilities graph?
the allocation method
using the factors of production to produce one item means there are ________ resources to use in the production of another.
which of the following is the name of the law that says that as a country produces less of one product and more of another, there is an increase in the resources needed to expand production of the second product?
law of increasing costs
any intersection of points outside the frontier (line) on a production possibilities graph would show that the economy is
growing due to an increase of resources
any intersection of points inside the frontier (line) on a production possibilities graph would show that the economy is
not using its resources to its full potential