Which of the following is an economic resource?
Economic resources are of four main types: labor, land (natural resources), real capital (machines, factories, buildings, etc.,) and entrepreneurs. Economic resources are also called factors of production or inputs in the productive process.
What is true about economic resources economic resources include only money economic resources are limited economic resources exist only at the individual level economic resources are always controlled by the government?
Economic resources are limited is the correct answer. Explanation: An economic resource is the factors that are used to produce goods or it uses to provide services. Economic resources are limited because the amounts of productive resources accessible to economics are limited.
Do Economics argue that individuals have rational self interest?
Actually it’s false. Economists only argue that individuals typically act based on self interest. The rational of their actions is subjective.
How does self interest benefit the economy?
Self-interest refers to actions that elicit personal benefit. The Invisible Hand Theory suggests that when entities make economic decisions in a free market economy based on their own self-interest and rational self-interests it manifests unintended, positive benefits for the economy at large.
Which of the following is not considered to be an economic resource?
Air, water, and sunlight are not the economic resources. This is because these resources are present in abundance which means they are not scarce. The example of economic resources are land, labour, capital.
Is money a resource?
Money is not capital as economists define capital because it is not a productive resource. Money merely facilitates trade, but it is not in itself a productive resource. Remember, goods and services are scarce because the factors of production used to produce them are scarce.
Which of the following is not considered an economic resource quizlet?
Money is not an economic resource because: money, as such, does not produce anything. The four factors of production are: land, labor, capital, and entrepreneurial ability.
Which of the following could be considered an economic agents?
Economic agents are consumers, producers, and/or influencers of capital markets and the economy at large. There are four major economic agents: households/individuals, firms, governments, and central banks. Some economists put governments and central banks together.
Which statement is a positive economic statement quizlet?
Terms in this set (21) Positive economic statements are statements of fact that imply no value judgment. Notice that the correct response merely stated what would happen if minimum wage went up and made no statement about whether that was good or bad. The other responses all imply value by using the word ‘should.
Why does opportunity cost exist quizlet?
people weigh costs and benefits to make decisions. 4. Opportunity costs exist because: the decision to engage in one activity means forgoing some other activity.
Does opportunity cost exist because of scarcity?
The opportunity cost of a choice is the value of the best alternative given up. Scarcity is the condition of not being able to have all of the goods and services one wants. It exists because human wants for goods and services exceed the quantity of goods and services that can be produced using all available resources.
What does opportunity cost mean?
Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. The idea of opportunity costs is a major concept in economics. Because by definition they are unseen, opportunity costs can be easily overlooked if one is not careful.
What is increasing opportunity cost in economics?
The law of increasing opportunity cost states that when a company continues raising production its opportunity cost increases. Specifically, if it raises production of one product, the opportunity cost of making the next unit rises. Our opportunity costs influence our decisions, economists say.
What happens when opportunity cost increases?
Increasing opportunity cost. When there are increasing opportunity costs, the shape of the production possibilities curve (PPC) is bowed out. Learn more about how the shape of the PPC, which is sometimes also called the production possibilities frontier curve (PPF), depends on opportunity cost in this video.
Is high opportunity cost bad?
Incurring opportunity costs is not inherently bad, as they do not detract from business decisions; instead, opportunity costs often enhance the decision-making process. Businesses engage in this type of decision-making to ensure the benefits of their decision are always greater than the cost of an alternative.
Does the economy above demonstrate the law of increasing opportunity cost?
b. Does the economy above demonstrate the law of increasing opportunity cost? This production possibilities curve is a straight line, which indicates that the opportunity cost along the line does not change. This economy does not demonstrate the law of increasing opportunity cost.
What does the law of increasing opportunity cost state?
The law of increasing opportunity cost states that each time the same decision is made in resource allocation, the opportunity cost will increase.
What is the law of increasing opportunity cost quizlet?
The law of increasing opportunity cost says that: as output increases for either one of the goods on a production possibilities curve, the opportunity cost of additional units of that good will be greater and greater.
What is the reason for the law of increasing opportunity costs group of answer choices?
The law of increasing opportunity cost is the concept that as you continue to increase production of one good, the opportunity cost of producing that next unit increases. This comes about as you reallocate resources to produce one good that was better suited to produce the original good.
What is an example of law increasing cost?
Increasing costs – example The company will have to pay workers at overtime rates to meet the increase in production. Therefore, labor costs will increase considerably. To produce more beds, the company will need to consume more energy. This is usually in the form of electricity.
Why does MOC increase?
Moc increases as we shift from production of of one good to another because resources are not equally efficient in the production of the two goods. this increases the marginal opportunity cost.
How does a PPC show economic growth?
Economic growth in the production possibilities curve (PPC) model. The production possibilities curve illustrates the maximum combination of output of two goods that an economy can produce, such as capital goods and consumption goods. If that curve shifts out, the capacity to produce has increased.