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Economic Systems 2020 Flashcards | StudBud
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Economic Systems 2020
Economic Systems 2020
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1
What do points outside of the production possibilities frontier indicate?
inefficient combinations of goods
ideal combinations of goods
inefficient use of resources
unattainable combinations of goods
2
Economic growth affects the PPF by
shifting it inward
shifting it outward
causing no change at all
turning it into a straight line
3
Stuart exchanges his Jose Altuve baseball card for a Aaron Judge baseball card. What has Stuart engaged in?
barter
loan
credit
monetary exchange
4
Which of the following should you consider when determining who should specialize in what?
comparative advantage
the bartering system
absolute advantage
division of labor
5
Wyatt can change the oil in his car more quickly than Declan. Which of the following does Wyatt have?
opportunity cost
absolute advantage
division of labor
specialization
6
Traditional economies are based primarily on
for whom it will be produced
how will goods and services be produced
what will be produced
custom and/or religion
7
The auto industry produces a new machine that speeds up automobile production. This would cause the PPF to
shift inward
shift outward
not enough information given
do nothing
8
In command economies,
households own all resources
firms own all resources
the government owns all resources
entrepreneurs own all resources
9
What dies the production possibilities frontier assume?
The resources in an economy are always changing.
There is no specific period of time given.
Technology remains constant.
Services, not goods, are taken into account.
10
The government has the most power in which of these economies?
pure market economy
market economy
command economy
transitional economy
11
Which of the following allows consumers the most choice?
pure market economy
command economy
traditional economy
transitional economy
12
In which of these economies would some firms have a profit incentive to monopolize markets?
pure market economy
transitional economy
pure command economy
traditional economy
13
Which of the following terms focuses on the opportunity cost of resources used in producing a given product?
absolute advantage
division of labor
comparative advantage
division of labor
14
Which of the following people would a pure market economy benefit least?
an unemployed engineer
a stockbroker
a CEO of a major corporation
a cateret
15
How does division of labor affect productivity?
It decreases productivity
It increases productivity
It does not affect productivity
It stops productivity
