A production possibilities frontier is bowed out because not all resources are

equally suited to all types of production.

The earned income tax credit

supplements wages of the working poor

in a pure market economy, firms do not produce public goods because

firms cannot sell public goods profitably

The law of comparative advantage helps explain

talented in many things can get more done by specializing.

Monetary policy tries to

stabilize the business cycle fluctuations

a government-owned and regulated monopoly

What is the primary source of poverty in the United States?

large number of births to single mothers

The opportunity cost of a chosen item or activity is

the value of all alternatives you must pass up.

studbud

Contemporary Economics Unit One: Introduction to Economics

30 termsStudBud Administration173 plays

a #contemporary #economics Quiz! to understand the #basics of #economics

Flashcards30 cardsFPractice quizPHost liveL

Questions 30

Answers

1
The Industrial Revolution began in Great Britain around
1850
1950
1650
1750
2
Governments play a role in safeguarding private property by establishing
courts that judge people to be guilty or innocent of crimes.
legal rights of ownership.
who may run businesses
laws that require people to find employment
3
Which of the following is a problem with command economies?
excess consumer goods
difficulty enforcing private property rights
environmental damage
inability to provide for national defense
4
A production possibilities frontier is bowed out because not all resources are
equally suited to all types of production.
available in equal quantities
equally profitable.
priced the same.
5
According to Adam Smith, market forces coordinate production as if by
a court ruling.
government degree
majority rule.
an invisible hand.
6
By-products of production or consumption that impose costs on third parties are known as
positive externalities.
exclusive externalities.
negative externalities.
rival externalities
7
The earned income tax credit
supplements wages of the working poor
provides cash to poor families with dependent children
food vouchers and housing assistance for the working poor
provides cash to the elderly poor and disabled
8
Which of these is not one of the four types of decision makers in the economy?
governments
labor unions
households
firms
9
An example of an exhaustible resource is
corn
oil
cotton
timber
10
Transitional economies are in the process of
centralizing economic decisions.
monopoly-building.
getting rid of private property.
privatization.
11
Which factor might best help an economy grow?
less immigration
cleaner air
lowering education standards
labor force increases
12
whether to have dessert, you consider the time you would spend eating it and extra calories.
opportunity cost.
marginal cost.
sunk cost.
capital cost.
13
in a pure market economy, firms do not produce public goods because
government produces all public goods
firms do not receive the benefits of public goods
government has absolute advantage in producing public goods
firms cannot sell public goods profitably
14
A study of total consumption in the U.S. economy would involve
normative economics
consumer economics
macroeconomics
microeconomics
15
Most economies today are
pure market economies
mixed economies
pure command economics
traditional economies
16
The law of comparative advantage helps explain
talented in many things can get more done by specializing.
why some products do better than others.
how economists work.
opportunity costs
17
Monetary policy tries to
stabilize the business cycle fluctuations
keep banks from failing
help the federal government manage its debt
increase number of businesses that trade with other nations
18
A public utility is
any company whose records are open to the public.
a company owned jointly by the citizens of the community.
individually owned monopoly whose records are open to public
a government-owned and regulated monopoly
19
What is the primary source of poverty in the United States?
too many people
large number of unemployed people
large number of births to single mothers
too few college-educated people
20
Deer in a forest are examples of
private goods
public goods
natural monopoly public goods
open-access goods
21
laws that reduce anticompetitive behavior and promote competition in the marketplace are called
zoning laws
intellectual property laws
patent laws
antitrust laws
22
Which of the following is a social insurance program?
Temporary Assistance for Needy Families (TANF)
Medicare
Medicaid
Supplemental Security Income
23
which of these is an example of an open-access good?
clean air
cell phone service
a new car
fish in the ocean
24
Which type of economy produces the highest standard of living for its citizens?
command
traditional
market-oriented
transitional
25
An example of a renewable resource is
copper
lumber
coal
oil
26
Being able to make something using fewer resources than other producers require would give you
monopoly
absolute advantage
comparative advantage
comparative disadvantage
27
The opportunity cost of a chosen item or activity is
the money you must give up to buy it.
the value of all alternatives you must pass up.
the value of the best alternative you must pass up.
money you lost by not choosing the least expensive option.
28
The intellectual property rights of a song writer are protected by a
copyright
trademark
unique commercial symbol
patent
29
The Industrial Revolution resulted in each of the following except
more efficient division of labor
reduced interdependency among workers and employers
increased use of specialized machines
reduced transportation costs
30
Which of the following is a monetary policy action used to combat a recession?
raising taxes
decreasing the money supply
increasing the money supply
cutting taxes

Contemporary Economics Unit One: Introduction to Economics Flashcards | StudBud