D089 - MODULE 1
capital - CORRECT ANSWER-a factor of production that is made to produce
other things (tools, equipment, etc.)
circular flow diagram - CORRECT ANSWER-a diagram that views the economy as
consisting of households and firms interacting in a goods and services market
and a factor market
entrepreneurship - CORRECT ANSWER-a person who seeks to earn profits by
finding new ways to organize factors of production (creating new products or
ways of doing things)
factors of production - CORRECT ANSWER-the resources available to the
economy for the production of goods and services (Land, Labor, Capital, and
Entrepreneurship)
goods and services market - CORRECT ANSWER-a market in which firms are
sellers of what they produce and households are buyers
human capital - CORRECT ANSWER-the skills a worker has as a result of
education, training, or experience that can be used in production
labor - CORRECT ANSWER-the human effort that can be applied to the
production of goods and services (workers working)
macroeconomics - CORRECT ANSWER-the branch of economics that focuses on
broad issues such as growth, unemployment, inflation, and trade balance
, microeconomics - CORRECT ANSWER-the study of how households and firms
make decisions and how they interact in markets
What are the three fundamental questions every economy must answer? -
CORRECT ANSWER-1. What to produce
2. How to produce it
3. For whom to produce it
Ford motor company recently decided to phase out their production of
traditional sedans and to focus on production of SUVs and trucks. This an
example of which fundamental question? - CORRECT ANSWER-What to
produce
Kohl's has built their brand with pricing strategies targeting middle income
women over the age of 40. They are now implementing changes to help them
reach millennial buyers. This an example of which fundamental question? -
CORRECT ANSWER-For whom to produce.
marginal - CORRECT ANSWER-extra, additional, change, or next (applies to the
next decision made, the next unit consumed, the next unit produced, and so
on)
marginal benefit - CORRECT ANSWER-the additional benefit a consumer
receives from buying the next unit (how much the next unit is worth to
consumers) also change in total benefit when the next unit is consumed
marginal cost - CORRECT ANSWER-the additional cost a producer has from
producing the next unit (how much it costs the firm to produce the next unit)
also change in total cost when the next unit is produced
capital - CORRECT ANSWER-a factor of production that is made to produce
other things (tools, equipment, etc.)
circular flow diagram - CORRECT ANSWER-a diagram that views the economy as
consisting of households and firms interacting in a goods and services market
and a factor market
entrepreneurship - CORRECT ANSWER-a person who seeks to earn profits by
finding new ways to organize factors of production (creating new products or
ways of doing things)
factors of production - CORRECT ANSWER-the resources available to the
economy for the production of goods and services (Land, Labor, Capital, and
Entrepreneurship)
goods and services market - CORRECT ANSWER-a market in which firms are
sellers of what they produce and households are buyers
human capital - CORRECT ANSWER-the skills a worker has as a result of
education, training, or experience that can be used in production
labor - CORRECT ANSWER-the human effort that can be applied to the
production of goods and services (workers working)
macroeconomics - CORRECT ANSWER-the branch of economics that focuses on
broad issues such as growth, unemployment, inflation, and trade balance
, microeconomics - CORRECT ANSWER-the study of how households and firms
make decisions and how they interact in markets
What are the three fundamental questions every economy must answer? -
CORRECT ANSWER-1. What to produce
2. How to produce it
3. For whom to produce it
Ford motor company recently decided to phase out their production of
traditional sedans and to focus on production of SUVs and trucks. This an
example of which fundamental question? - CORRECT ANSWER-What to
produce
Kohl's has built their brand with pricing strategies targeting middle income
women over the age of 40. They are now implementing changes to help them
reach millennial buyers. This an example of which fundamental question? -
CORRECT ANSWER-For whom to produce.
marginal - CORRECT ANSWER-extra, additional, change, or next (applies to the
next decision made, the next unit consumed, the next unit produced, and so
on)
marginal benefit - CORRECT ANSWER-the additional benefit a consumer
receives from buying the next unit (how much the next unit is worth to
consumers) also change in total benefit when the next unit is consumed
marginal cost - CORRECT ANSWER-the additional cost a producer has from
producing the next unit (how much it costs the firm to produce the next unit)
also change in total cost when the next unit is produced
