stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
econ review Flashcards | StudBud
Explore
/
econ review
econ review
34 terms
·
StudBud Administration
·
2 plays
Imported from external platform
Flashcards
34 cards
F
Practice quiz
P
Host live
L
Questions
34
Answers
1
Which is generally a characteristic of a Command economy?
investment is encouraged by the promise of large profits
entrepreneurs sell shares in companies to the government
government agencies are involved in production planning
the role of government in the economy is restricted by law
2
What is the main goal of a mixed economy?
to promote individual and social rights
to ensure fairness in business
to get rid of high taxation
to gain private property
3
Centrally Planned Economy
n/a
Combines Government control and private enterprise
Government Controls Everything
n/a
4
Invisible hand Theory
Says firms decide what to produce.
Says a free market regulates itself.
5
Laissez Faire
Is the OPPOSITE of free enterprise
Was supported by the Unions
Argued that companies should pay high wages
Stated that Gov't should NOT get invovled in the economy
6
What does
scarcity
mean?
There is not enough for everyone.
No one needs or wants an item.
There is enough for everyone.
7
According to Adam Smith, competition
increases prices
fosters efficiency
increases demand
prevents low prices.
8
Scarcity vs. shortage difference?
Scarcity is temporary
Businesses vs. consumers
Goods vs. services
Scarcity always exists
9
opportunity cost (economics)
loss from choosing one thing over another
i forgot
cost of doing something- like paying for food
10
Which of the following describes the role of an entrepeneur best
Having money to start a new business
Being able to work alone
Being employed by a large organisation
Must have a willingness to take risks
11
who dictates supply in a free market economy?
Consumer
Nobody
Producer
Producers and Consumers
12
Which of the following is NOT an example of land
Forest
Field
River
Factory
13
What is a traditional economy?
There is no such thing as a traditional economy.
An economy that the government maintains.
An economy that is controlled by the market.
An economy that is based on what your ancestors did.
14
Why did the Soviet economy collapse?
Boris Yeltsin’s attack on the Communist Party in Russia.
They were dumb
Inefficient planning and huge spending on the arms race
Reagan’s “trickle-down economics.”
15
Government intervention in a free market economy is often justified on the basis of:
Correcting market failures
Reducing competition
Increasing inequality
Promoting monopolies
16
Which of the following is an example of CAPITAL?
Water
Machinery
Diamonds
Investors
17
Why did china's economy boom again?
they started using command market principles
They went back under communistic rule.
they started using mixed market principles
They started using free market principles
18
According to Adam Smith, self interest _____________________________
leads businesses to offer the best quality at the lowest price
brings about government interference
is harmful to society
leads businesses to produce shoddy products at high prices
19
What has been the biggest factor in the large increase in economic growth over the past 200 years?
More natural resources
GDP
Less people
Technological advancements
20
Example of labor
Professional football player
Merchanant
Teacher
All of the answers.
21
Which of these was our historical example of a Command Economy?
Soviet Union under Communism
U.S. during the Gilded Age
Feudalism in Europe
22
Scarcity vs. Shortage: Which is temporary?
shortage
scarcity
23
What person is MOST associated with a Market/Capitalist Economy?
Karl Marx
Adam Smith
24
Which is not one of the three advantages of a free market economy
A lot money being made
Efficiency
Innovation
Economic Growth
25
Where would a "Mixed Economy" fit on the economic spectrum?
Left
Center
Right
26
The difference between
human
&
physical capital.
Human = knowledge / Physical = technological
Human = labor / Physical = skills
Human = knowledge / Physical = tools
Human = skillz / Physical = labor
27
Define economics
Study of how businesses and individuals distribute money
Study of how people make choices due to scarcity
Study of money
Study of businesses
28
What are the factors of production?
There are no factors of production
Land, labour and enterprise
Employment, ethics, age and gender
Land, labour, capital and enterprise
29
What is a shortage in economics?
being without
There is not enough of a product or service to meet demand
a deficit of something required
amount by which something, like a sum of money, is too small
30
Trade-off in economics means
the next best alternative
an alternative choice
scarcity
31
Which of these was used as our historical example of a Traditional Economy?
Soviet Union under Communism
Feudalism in Europe
U.S. during the Gilded Age
32
Adam Smith's book?
Communist Manifesto
A Nation of Wealth
Capitalist Manifesto
Wealth of Nations
33
Three basic economic questions?
When, where, how
What, how, who
What, how, for whom
What, how, where
34
This is a market economy-free market
command
communism
detente
capitalism
