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Fraley Econ & Personal Finance UNIT 1 REVIEW Flashcards | StudBud
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Fraley Econ & Personal Finance UNIT 1 REVIEW
Fraley Econ & Personal Finance UNIT 1 REVIEW
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1
What is the biggest issue that accompanies public services and safety nets
They give too much money
The cost are too great
Free Riders
There is often not enough to go around
2
The production possibilities frontier:
Marks a boundary showing attainable levels of production.
Is also called the supply curve.
Once applied to US technology, but now only to Japanese.
Refers to the technology used in such goods as computers.
3
Abolishes private property
communism
capitalism
4
Why do organizations use performance-based pay systems?
As a guarantee for high employee performance.
It's the only reason an employee works.
As an incentive for high employee performance.
5
Specialization in economics
protects freedom
makes things run more effieciently
creates greater equality
creates negative incentives
6
Free enterprise also requires
Legal equality
Free contract
Free market
Profit motive
7
Economics is the study of
People controlling money in an economy
People allocating limited resources to satisfy unlimited wants
Government deciding what to produce
Consumers deciding what to buy
8
What is human capital?
A worker’s skills, knowledge, and experience
Investment in new technology
Immigration of people into a country
the quantity of a company’s equipment
9
Increasing the number of laborers or an improvement in technology will shift the PPF
to the right
to the left
no shift
none of the above
10
Which one of these is false about the role of government in economics?
Provide public goods
Correct Market Failure
Provide workers for business
Provide a legal system
11
economic incentives
Economic incentives motivate you to pursue your preferences.
economic disincentives
12
the concept of voluntary exchange means
neither buyer nor seller has made a profit
that no money was exchanged
only workers will benefit from the exchange
people freely and willingly engage in market transactions
13
What are the 4 economic growth factors?
Human capital, capital goods, literacy, entrepreneurship
capital goods, entrepreneurship, GDP, natural resources
human capital,capital good,natural resource,entrepreneurship
human capital, capital goods, literacy, GDP
14
What is the business cycle?
the tendency of a new business to get larger each year
the exchange of goods between different nations
the flow of money between households and businesses
fluctuations in a country’s economic activity over time
15
Command Economy
voters control business owners
people control everything
government controls everything
state control business
16
Specialization in economics means....
to focus all energy on being a special worker
to have a special set of workers
to concentrate on and become an expert in a particular skill
being a very special contributor to economics
17
What is the production possibility frontier?
how much an economy grows in a year
how much an economy will develop over the next decade
how much a economy can produce with no resources left
how much an economy can produce giving existing resources
18
Transfer payments
___.
are only for the wealthy
don't require anything in return from the recipient
must be paid back later by the recipient
are illegal
19
in economics, natural resources
capital
land
entrepreneurship
labor
20
Business cycles are
Stable and irregular
Unstable and predictable
Irregular and unpredictable
Regular and predictable
21
resources used to make goods and services
goods
capital
factors of production
shortage
22
Which of the following is true about scarcity?
Scarcity exists only in poor countries
Scarce goods lead to lower prices
Scarcity affects all societies
Scarcity is eliminated by using economic policy
23
Points inside a PPF are efficient and points outside a PPF are inefficient
False
True
24
Public Services & Public Goods _____.
are the things that can keep us happy, healthy, and safe
promote the general welfare.
relate to policy
are funded by taxes.
25
Which point, along the PPF, demonstrates inefficiency?
None of the above
Point beneath the curve (x)
Point on the curve (a)
Point above the curve (y)
26
A shortage is___________
Temporarily running low on a resource or good
naturally occurring limitation on a good/resource that can't be replenished
27
Factors of Economic Growth
Entrepreuership
Capital
Land
Labor
28
Economic Incentives
Guidelines used by federal government
Use to get over on citizens
Companies uses these to get what they want
Factors motivate and influence the behavior of individuals and organization
29
The economic reality of scarcity refers to man's
Limited wants and limited resources
Limited wants and unlimited resources
Unlimited wants and unlimited resources
Unlimited wants and limited resources
30
A combination of goods and services outside/ (above) the PPF illustrates:
full production
not possible OR unachievable production
maximum production
underproduction
31
What is a traditional economy?
An economy that is controlled by the market.
An economy that is based on what your ancestors did.
An economy that the government maintains.
There is no such thing as a traditional economy.
32
Transfer payments include
wages paid from employers to employees.
Social Security payments.
Both of these
33
A mixed economy ...
was more useful before the invention of bitcoin
has elements of both market and command economies
has limited use in today's global economy
has elements of traditional, market & command economies
34
Which economic system encourages individual freedoms while providing public safety nets?
Free Enterprise
Starship Enterprise
Pure Communism
Laissez Faire
35
A production possibility frontier represents
the technology that should be used.
the resources that should be used.
how many people to hire.
the maximum amount of goods that can be made.
36
free market competition
1870s - 1890s; growing gap between the rich & poor
you can take your product or service to the marketplace and freely compete
Process of making large quantities of a product quickly and cheaply
Founded by John D. Rockefeller. Largest unit in the American oil industry
37
What does
scarcity
mean?
No one needs or wants an item.
There is enough for everyone.
There is not enough for everyone.
38
Who dictates demand in a free market economy?
All answers are correct
Producer
Consumer
Seller
39
Marginal cost is:
The cost of producing one more unit of a good.
Total revenue minus total cost.
The difference between fixed and variable costs.
Total revenue plus total cost.
40
an economy at its production possibilities frontier is operating
as a free enterprise economy
without division of labor
at full potential
with slow economic growth
41
Transfer payments include
taxes
unemployment benefits
government regulations
protection
42
Free enterprise requires government control
True
False
43
the role of the government in economics is
decided what products get bought and sold based on shopping trends
create a profit motive
protector
offer quality products at competitive prices
44
True or false: Free enterprise requires the existence of private property.
True
False
45
Public goods include
fire and police services
computer repair services
banking and other financial services
child-care services
46
Business Cycles
Social
Economic
Political
Technological
47
All choices entail an opportunity cost
False
True
48
who dictates supply in a free market economy?
Producer
Nobody
Producers and Consumers
Consumer
49
What phase of the business cycle is point 1
Peak
Trough
Expansion
Contraction
50
Preface - what is the role of government in economics?
to maximize profits for corporations
to address market failures and regulate markets
to stay uninvolved in market affairs
to solely focus on macroeconomics
51
Who determines your opportunity cost?
Your parents
Your friends
Your teachers
You
52
Opportunity cost is...
The last option when we make a decision
The decision making process
The second best option not chosen when we make a decision
The first option chosen when we make a decision
53
Public transfer payments include
all of the above
medicaid
housing assistance
food stamps
54
What is legal equality?
An important or unique decision
A complete agreement
Limited executive privilege.
The concept that everyone is equal in the eyes of the law
55
Marginal analysis involves comparing marginal benefit to marginal cost.
False
True
56
Public goods are
non-rival
non-excludable
non-rival and non-excludable
Rival
57
What are externalities in economics?
Side effect of economic activity that affect third party
Additional costs incurred when a company reduce a good
Taxes that business pay to government
Profits a company make from exporting good
58
What are transfer payments?
Public Goods
Payments to businesses from the government
A Government way to redistribute money collected from taxes
59
Marginal benefit is
additional gain from one more unit of an activity
loss of highest-valued alternative
forgone opportunity
additional cost from one more unit of an activity
60
Specialisation causes inefficiency in a PPF
True
False
61
What are externalities in economics?
Pollution, or other negative things from a business.
Bad weather, slow traffic, and lost keys
People who are from the govenment
Investments, stocks, and mutual funds
