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Econ Chapter 2 (2023) Flashcards | StudBud
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Econ Chapter 2 (2023)
Econ Chapter 2 (2023)
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Economic Systems & Tools Chapter
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
Economies that are shifting their orientations from central planning to competitive markets are known as
traditional economies
transient economies
transitional economies
transactional economies
2
Specialization occurs when individual workers focus on
following management's directions.
earning as much profit as possible.
single tasks.
cooperating with other workers.
3
According to Adam Smith, market forces coordinate production as if by
an invisible hand.
a court ruling.
government degree.
majority rule.
4
Being able to make something using fewer resources than others require would give you a(n)
comparative advantage.
monopoly.
camparative disadvantage.
absolute advantage.
5
An Economic system in which all resources are government owned & production is directed by government is known as
Pure Market Economy
Pure Command Economy
Monopoly economy
Mixed Economy
6
Most economies today are
pure market economies.
traditional economies.
mixed economies.
pure command economies.
7
Which of the following is
NOT
true of a pure market economy?
Resource owners have property rights.
Markets are regulated by government.
Prices guide resources to the most productive use.
Markets answer the what, how, and for whom questions.
8
Consumers in command economies have an unlimited amount of all good available to them.
False
True
9
An economic system resolves the questions of what, how and for whom that all economies must answer.
True
False
10
An economic system is the set of mechanisms & institutions that resolve the questions of what, how, and
for whom.
when.
why.
where.
11
The United States is a mixed economy, but markets play a relatively large role.
True
False
12
Which type of economy produces the highest standard of living for its citizens.
market-oriented
command
transitional
traditional
13
The economy of the United States can be described as a
Traditional economy
Command economy
Mixed economy
Pure market economy
14
The law of competitive advantages helps explain
why a person talented in many things can get more done by specializing.
why some products do better than others.
how economists work.
opportunity costs.
15
In a market economy, what rights give resource owners the freedom to use their resources as they please?
Voting rights
Economic rights
Property rights
Monopoly rights
16
A steel factory pollutes the water, but the price of steel fails to relfect such costs, because pollution costs are
externalities.
rules of the game.
public costs.
opportunity costs.
17
Which of the following is a problem with pure command economies?
environmental damage.
difficulty enforcing property rights.
excess consumer goods.
inability to provide for national defense.
18
Which factor might best help an economy to grow?
cleaner air
lowering educational standards
less immigration
labor force increases
19
In a pure command economy, all the following except
prices are set.
competition is encouraged.
resources are controlled.
living space is rationed.
20
The downward slope of PPF indicates the economy produces 1 more good, it produces less of others. What is demonstrated?
increased efficiency
increased production
opportunity cost
competition
21
Points along a PPF represent production of 2 types of products that
are most profitable for business owners.
are best for the economy.
make efficient use of resources.
are most satisfying to consumers.
22
In a pure market economy, market forces coordinate as if by an "invisible hand."
False
True
23
A traditional economy is shaped largely by custom or religion
False
True
24
The main medium of exchange in the United States is
barter.
money.
stock.
bonds.
25
An example of a public good, in an economic context, is
cheaper gas prices.
national defense spending.
longer library hours.
lower new car prices.
