Which of the following is characteristic of a traditional economy?

Children tend to have the same job as their parents did

Which of the following lists would an economist consider to be land?

iron ore, natural gas, fertile soil, water

What effect does new technology usually have on the economy?

It makes the economy stronger and more efficient

What does the Temporary Assistance for Needy Families program provide?

cash to the states to help run their welfare programs

Human capital includes ____.

a taxi driver's knowledge of city streets

How would the economy of Canada be characterized?

Mixed, on the side of free market

Why do markets exist?

allow people to buy what they need and sell what they make

Which of the following is NOT characteristic of a centrally planned economy?

each collective or factory sets its own goals

An efficient economy is one that

uses its resources to make the most goods and services

What is the opportunity cost of a decision?

most desirable alternative given up for the decision

The economy of China is in transition. What does this mean?

Economy is moving from Centrally planned toward free market

Which of the following is the kind of decision that can be made on the margin?

whether or not to hire new workers, whether or not to build an extra room on a home

An example of a shortage is limited amounts of ____.

food available bc trucks carrying it are on strike

The lack of which of the following represents a scarcity?

enough workers to do 2 jobs bc there are limited workers

How could the Chinese economy be characterized?

mixed, but on the side of centrally planned

A company that makes baseball caps is underutilizing its resources. What does this mean?

it is producing fewer caps than it could be

Each check, some of your $ is withheld as Social Security payroll deductions. What is the $ for

Redistributed as cash transfers to elder and disabled people

What is one benefit provided by Social Security?

retirement income for the elderly

Automakers are required to comply with public disclosure laws. Which is an example of this?

car dealers must display a sticker with fuel efficiency

What is an important advantage of a free market?

it offers a wide variety of goods and services

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Rewanomics Unit 1 Review

72 termsStudBud Administration89 plays

Review for Chapters 1-3. Basic Economic principles, economic systems, American Free Enterprise

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Questions 72

Answers

1
Which of the following is characteristic of a traditional economy?
Children tend to have the same job as their parents did
They have a high standard of living
They are usually based on light economic production
Communities tend to be fast-growing
2
Total value of all goods and services produced in a particular economy
gross domestic product
standard of living
net worth
open market value
3
Democratic means should be used to distribute wealth evenly throughout a society
Communism
Authoritarianism
Socialism
Capitalism
4
Study of economic behavior and decision making of small units like individuals or businesses
Economics
Quantumeconomics
Microeconomics
Macroeconomics
5
Goods and services provided for free or at greatly reduced prices
cash transfers
safety net
welfare
in-kind benefits
6
Any resources that are made by humans and used to create other goods and services
labor
Services
capital
production
7
Which of the following lists would an economist consider to be land?
farm fields, tractors, pesticides, fertilizers
iron ore, natural gas, fertile soil, water
factories, office buildings, assembly lines, workers
dams, bridges, rock quarries, oil wells
8
What effect does new technology usually have on the economy?
it reduces the available jobs
It makes the economy stronger and more efficient
it slows an economy down for at least a while
it reduces the dependence of the economy on business
9
To sell a state-run firm to individuals
privatize
localize
auctioneering
free enterprise
10
Production possibilities increase bc workers are better at using new computers.
Growth from physical capital
Growth from technology
Growth from global resources
growth from production opportunity
11
Physical objects that can be exchanged
Services
Goods
Factors
Trading cards
12
What does the Temporary Assistance for Needy Families program provide?
cash to workers injured on the job
cash to the states to help run their welfare programs
retirement income for the elderly
compensation to all who lose jobs
13
requirements for companies to provide full information about their products
In-kind benefits
Freedom of Information Act
Public disclosure laws
Public interest
14
Human capital includes ____.
the equipment used by a doctor to cure a patient
the machinery used to weave cloth
a taxi driver's knowledge of city streets
the salary paid to an accountant
15
All of the possible alternatives that are given up when a choice is made
Cookies
Externalities
Trade-offs
Opportunity cost
16
A new runway opens at the airport and the flight path goes over your house. The noise is a ___.
free-rider problem
Positive externality
Negative externality
market failure
17
How would the economy of Canada be characterized?
Centrally Planned
Free market
Mixed, on the side of centrally planned
Mixed, on the side of free market
18
Households pay firms and receive goods and services. This happens in the _____ market.
after
Product
factor
traditional
19
Situation in which goods/services are not fairly distributed
Poverty threshold
Externality
Market failure
Free Market
20
Why do markets exist?
ensure gov't doesn't intervene in manufacturing
markets ensure economic equity for all people
provide people with public places to exchange ideas
allow people to buy what they need and sell what they make
21
Which of the following is NOT characteristic of a centrally planned economy?
each collective or factory sets its own goals
central gov't makes all economic decisions
each person is assigned a job
central gov't owns all land and capital
22
An efficient economy is one that
makes the least costly use of its resources
makes the best use of its goods and services
uses its resources to make the most goods and services
has very few people who do not work for a living
23
Which of the following does a gov't provide as part of a safety net for the people?
regulation of commerce
General elections every 4 years
a strong military defense
unemployment compensation
24
Large farm leased from the state to groups of peasants; common in centrally planned economies
Collective
Laissez Faire
Pasture
Plantation
25
Part of the economy that involves transactions of individuals and businesses
Public Sector
Product market
Factor market
Private sector
26
What incentive motivates a manufacturer to sell a product?
making profits on sales
pleasing the consumer
popularity of the product
putting others out of business
27
What is the opportunity cost of a decision?
Best possible way the question could have been decided
most desirable alternative given up for the decision
different ways a different person might make the decision
Series of alternative decisions that could have been made
28
Economic side effect that makes benefits/costs to someone other than the person deciding
Consequence
Fallout
Externality
Public policy
29
The economy of China is in transition. What does this mean?
Economy is moving from Centrally planned toward free market
individual firms are being sold to the state
Investments are determined by state not privately made
gov't rarely intervenes in free market
30
Which of the following is the kind of decision that can be made on the margin?
whether or not to hire new workers
whether or not to go on vacation
whether to have a dog or a cat as a pet
whether or not to build an extra room on a home
31
Private organization that attempts to influence public officials to act or vote in certain ways
market research group
public policy group
interest group
free enterprise group
32
Which of the following is the best example of a public good?
country club
highway system
movie theater
shopping mall
33
An example of a shortage is limited amounts of ____.
food available bc trucks carrying it are on strike
food available bc few people want to buy it
labor available bc workers have other jobs
water available for irrigating a crop bc it's used on others
34
The resources used to make all goods and services
production trade-offs
opportunity costs
production possibilities
factors of production
35
The lack of which of the following represents a scarcity?
orange juice because the truckers are on strike
grapefruit juice because few people want to buy it
enough workers to do 2 jobs bc there are limited workers
enough workers to work night shift bc pay is too low
36
What is a factory building an example of?
technology
physical capital
Human capital
an economic trade-off
37
How could the Chinese economy be characterized?
mixed, but on the side of free market
centrally planned
mixed, but on the side of centrally planned
free market
38
Period of economic expansion followed by a period of contraction
Business model
Depression
Business cycle
Economics
39
A company that makes baseball caps is underutilizing its resources. What does this mean?
it is paying its employees less than it should be
it is making caps when it should make shirts instead
it is producing fewer caps than it could be
it is running more efficiently than its competitors
40
What is the most effective way for consumers to make their desires known to businesses?
by protesting and boycotting products
by hiring lobbyists and joining consumer groups
by the purchases they make
through mail and phone surveys
41
What kind of benefit would Section 8 subsidized housing be?
faith-based initiative
Cash transfer
social security benefit
in-kind benefit
42
Term that refers to government aid to the poor
Safety net
Market failure
Free rider
Welfare
43
Location on circular flow model where households purchase goods and services from firms
Black Market
Product Market
Factor Market
Wal-mart
44
Why does the gov't protect authors and inventors by offering them patents and copyrights?
to strengthen American culture
to encourage free trade
to promote innovation
to regulate the business cycle
45
Each check, some of your $ is withheld as Social Security payroll deductions. What is the $ for
put in an account with your name: earn interest til u retire
used to provide medical benefits to Americans over 65
Redistributed as cash transfers to workers injured at work
Redistributed as cash transfers to elder and disabled people
46
Expectation that encourages people to behave in a certain way
Incentive
Externality
Interest
Consequence
47
Paid effort that people devote to a task
Income
Labor
Work
Investment
48
Part of the economy that involves the transactions of the government
Factor market
Product market
Private sector
Public sector
49
What is one benefit provided by Social Security?
medical care for the indigent
cash transfers to workers injured on the job
retirement income for the elderly
compensation for all who lose jobs
50
Automakers are required to comply with public disclosure laws. Which is an example of this?
automakers must test all cars for crash-worthiness
car dealers must display a sticker with fuel efficiency
Salesman must sell to anyone regardless of race, sex, etc
Salesman provides info about competitor's car
51
What is an important advantage of a free market?
it protects the less fortunate
It does not change unless the gov't directs it
it is easy to regulate
it offers a wide variety of goods and services
52
Which of the following is not an example of a public good?
national parks
shopping malls
municipal libraries
highways
53
The study of the behavior and decision making of entire economies
macroeconomics
microeconomics
economics
quasieconomics
54
Why are all goods and services scarce?
Some goods cost more than others
some people want to have more goods than others
some things are needs and others are wants
All resources are scarce
55
Struggle among various producers for the consumer's business
Socialism
Competition
Incentive
Self-regulation
56
You will still be able to get PBS whether or not you donate $. You don't donate. What problem?
externality problem
free-rider problem
public sector problem
Public good problem
57
Income people receive for supplying things like land, labor, and capital
investment
product payments
interest
factor payments
58
A person who believed in Laissez Faire wouldn't like
government bailouts of banks
the invisible hand
consumer sovereignty
self-interest as a motivating force in the free market
59
Which of the following is NOT a key economic question?
How should it be ensured that goods/services are paid for?
Who consumes these goods/services?
How should these goods/services be produced?
What goods and services should be produced?
60
What is the motivating force behind the free market?
The invisible hand
Self-interest
Competition
Specialization
61
Which of the following makes someone an entrepreneur?
Earning a lot of money as a computer programmer
inventing and selling rights to make a computer game
becoming a highly paid dancer
running a service that hires people to install speakers
62
Person who consumes a good but does not pay for it
Free rider
entrepreneur
volunteer user
private consumer
63
Which of the following was a Free Market philosopher?
Friedrich Engels
Adam Smith
Karl Marx
Vladimir Lenin
64
Income level below that which is needed to support families or households
Welfare
Cash transfers
Poverty threshold
Broke barrier
65
Why does even a free market need some government intervention?
to ensure the gov't has freedom to tax as necessary
to make sure that the gov't can meet its needs for military
to provide for things that the marketplace doesn't address
so the gov't has some control over factor resources
66
In what kind of economy does the government make all the decisions?
socialist
free enterprise
laissez faire
centrally planned
67
One's own personal gain
Safety net
Self-interest
Collective
Privatize
68
What does a production possibilities frontier show?
an economy that is producing but not at the maximum
scarce and less scarce resources
global trade-offs and costs of doing business
the maximum amount that an economy can produce
69
Limited quantities of resources to meet unlimited needs or desires
Shortage
Scarcity
Economics
Labor
70
Method used by society to produce and distribute goods/services
Safety net
Product market
Economy
Economic system
71
Robots are used to make cars quicker. This is growth caused by _____.
human capital
land and natural resources
production possibilities curves
technology
72
Why does the government make sure that businesses disclose so much info to the public?
to make it hard for businesses to make an excess profit
to make it easy for businesses to have good information
To make buyers more knowledgeable and safer
to make it easier for consumers to save money

Rewanomics Unit 1 Review Flashcards | StudBud