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Introduction to Economics Flashcards | StudBud
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Introduction to Economics
Introduction to Economics
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A review game for Ms. Frischman's Unit One Test
Flashcards
29 cards
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Practice quiz
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Host live
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Questions
29
Answers
1
Which of the following is NOT one of the main economic goals of any government?
To keep unemployment low.
Steady economic growth.
Keep prices stable.
To regulate banks.
2
Which is the MOST LIKELY to have all 3 of its basic economic questions answered by it's govt?
Russia
North Korea
United States
China
3
The govt decides between spending $$ on a hospital or border security. This is a(n)
production possibility
guns-or-butter tradeoff
opportunity cost
irrational
4
The total value of all goods & services produced by an economy in one year is called:
the business cycle
macroeconomics
microeconomics
gross domestic product(GDP)
5
Markets allow us to:
get the highest prices for what we sell.
sell the most goods we possibly can.
exchange things we have for things we want or need.
get the lowest prices for what we buy.
6
All the goods and services we produce are:
recyclable
expensive
efficiently produced
scarce
7
The public interest is:
the right to buy and sell goods
the concerns of the public as a whole
the right of consumers to have safe products
a property right guaranteed by law
8
What is the MAIN purpose of a production possibilities graph?
Show how resources are split b/w military and civilian goods
To make it possible to increase an economy;s output.
To keep an economy from underutilizing its resources.
To show alternative ways an economy can use its resources.
9
What is the opportunity cost of two new CDs that cost you $30?
The difference between the cost of making the CDs &the price
Dinner and a movie with your friends this weekend.
Whatever the second choice was to spend the $30 on.
Knowing that you are the last of your friends to buy them.
10
Giving up one alternative for another is called:
inefficiency
opportunity cost
trade-off
underutilization
11
Which of the following is NOT a factor of production?
The children who the woman supports with her labor.
The cotton cloth and thread used in making the quilt.
A woman who makes a quilt for $10.00 per hour.
The wood frame on which the quilt is made.
12
Shortages occur when:
businesses can't supply goods and services to meet demand.
many people are unemployed.
all resources are scarce.
interest rates go up.
13
Economics is the study of how people:
respond to war and drought
calculate their income taxes
gain knowledge and skills from study and experience
choose from limited resources to meet their needs
14
According to Adam Smith, the self-regulating nature of a free market is known as:
"the invisible hand"
safety net
competition
self-interest
15
What is one of the most important advantages of a free market economy?
It is easy to regulate
It encourages growth and entrepreneurship.
It can change rapidly
It provides a safety net for the poor and less fortunate
16
The minimum income needed to support a household is called:
poverty threshold
TANF
safety net
welfare
17
Which of the following is impossible to achieve in a pure free market economy?
economic equality
economic freedom
economic growth
economic efficiency
18
The free enterprise system of the US can be best described as:
socialist
traditional
free market
mixed economy with limited government and lots of freedom
19
Which of the following was a FREE MARKET philosopher/economist?
Friedrich Engels
Josef Stalin
Adam Smith
Karl Marx
20
The study of the behavior and decision-making of entire economies is known as:
the business cycle
gross domestic product (GDP)
macroeconomics
microeconomics
21
Social Security provides:
income assistance for poor people
retirement payments to the elderly
healthcare for children
cash payments to people who lose their jobs
22
Which of the following is NOT capital?
the person whose picture is taken by a photographer
the paint used by a housepainter
the computer used by an accountant
the state house where state government is conducted
23
Which is NOT an example of capital at a book printing company?
The paper upon which the books are printed.
The skills and knowledge of the people who make books there.
The office where it is located.
The oil used to heat the factory.
24
Which of these is an example of a PUBLIC good that might be provided in a mixed economy?
car
milk
skyscraper
bridge
25
Which event in world history MOST revealed the problem with Classical Economic Theory?
The Cold War
World War I
The Great Depression
The Industrial Revolution
26
When we are deciding how much more or less to do or make or buy of something, we are:
thinking at the margin.
considering production possibilities.
behaving efficiently.
acting rationally.
27
What does SPECIALIZATION do for an economy?
It makes it more efficient.
It eliminates unemployment.
It fosters competition.
It makes it easier to control.
28
In a traditional economy, economic decisions are based largely upon:
government control
market forces
custom
technology
29
A negative economic side effect of production that the govt may take action to correct is a(n):
profit
free rider
externality
safety net
