FREE ECONOMICS AND STUDY GAMES ABOUT AICE ECON

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FREE ECONOMICS AND STUDY GAMES ABOUT AICE ECON

AS UNIT 1 EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -25 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Medium of Exchange

Answer:

A feature of money. All sellers are willing to accept it as payment for goods and services.

Question 2: Consumer Goods

Answer:

Goods the people buy and then use up.

Question 3: Land

Answer:

The factor of production that includes natural resources.

Question 4: The Economic Problem

Answer:

What to produce, how to produce it and who gets it once it is made.

Question 5: Production Possibilities Curve (PPC)

Answer:

A graph showing the opportunity cost of resource allocation.

Question 6: Scarcity

Answer:

The concept that resources are on unlimited and choices must be made.

Question 7: Capital Good

Answer:

Goods used to produce other goods and services.

Question 8: Mixed Economy

Answer:

Essentially all economies in the world today. Decisions about resource usage are made in part by the market and by the government.

Question 9: Coincidence of Wants

Answer:

The main barrier to trade. Both parties in a trade have to value and desire what the other has.

Question 10: Opportunity Cost

Answer:

Whenever we make a choice, this is the next best alternative.

Question 11: Division of labor greatly increases...

Answer:

Effiency and total output.

Question 12: Store of Wealth

Answer:

Feature of money. Money can be held over time without losing its value.

Question 13: Trade Off

Answer:

Every choice has an unlimited number of alternatives.

Question 14: Liquidity

Answer:

How easy wealth is to spend.

Question 15: Inefficient Production

Answer:

When production on a PPC is graphed inside the PPF the economy is described as...

Question 16: Market Economy

Answer:

An economy where resources are allocated by the price mechanism of supply and demand.

Question 17: Capital

Answer:

The factor of production concerning man-made aids to production

Question 18: Normative Statement

Answer:

A statement based on an opinion.

Question 19: Production Possibilities Frontier (PPF)

Answer:

The name of the line of a PPC that shows production a peak efficency.

Question 20: Unit of Account

Answer:

Feature of money. Gives a standard unit for prices to be understood.

Question 21: Enterprise

Answer:

The factor of production concerning the creation of new producing companies.

Question 22: Ceteris Paribus

Answer:

A latin phrase meaning "all other things being equal".

Question 23: Labor

Answer:

The factor of production concerning paying people to provide a good or service.

Question 24: Positive Statement

Answer:

A verifiable statment of fact.

Question 25: Command Economy

Answer:

An economy in which the government makes most decisions about how resources are used.