What is economic growth?

Needed so that people have more goods and services

What is full employment?

The economy is providing as many jobs as possible

What is a fixed income?

Income that does not rise with the prices

What is a traditional economy?

Allocation of resources stems from rituals, habits, customs

What is a Command Economy?

Central authorities make most of the decisions

Rise in the general level of prices

What is price stability?

Condition when prices remain relatively stable

What does it mean to have economic security?

Protection from adverse economic events such as layoffs

Name one of the three types of economic systems.

All of the above, Command, Market, Traditional

What is an economic system?

An organized way of providing for the wants and needs

What is economic freedom?

People choose their own occupations, employer and uses for $

What is a Market Economy?

People and firms act in their own best interests

What is economic efficiency?

Benefits gained are greater than costs occurred

What does the production possibilities frontier represent?

various combination of goods when all resources are employed

What is social security?

Federal program of disability and retirement benefits

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Economics Quiz 2

25 termsStudBud Administration359 plays

A review of terms for chapter 2 and PPF

Flashcards25 cardsFPractice quizPHost liveL

Questions 25

Answers

1
True or False - The United States is a traditional economy based on command economy ideas
False
True
2
True or False - A command economy gradually moves from one crises to the next.
True
False
3
How many major social and economic goals are there in the United States?
9
7
1,000,000,000
4
4
What is economic growth?
The physical size of the dollar bill grows exponentially
Needed so that people have more goods and services
All the eggs are in one basket
The economy loses its ability to provide jobs
5
What is full employment?
Equal pay for equal work
The economy is providing as many jobs as possible
People choose their own occupations
Business employ everyone in the economy
6
What is a fixed income?
Income that does not rise with the prices
Rise in the general level of prices
An income that rises with the level of prices
Federal program of disability and retirement benefits
7
What is a traditional economy?
Central authorities make most of the decisions
People and firms act in their own best interests
A system that allows for new ideas and systems
Allocation of resources stems from rituals, habits, customs
8
What does point "E" represent on the curve?
ide resources
200 units of butter
Economic growth
30 units of guns
9
What is a Command Economy?
People and firms act in their own best interest
Central authorities make most of the decisions
Government is the single most important entity
Allocation of resources based on rituals, habits, or customs
10
What is inflation?
Rise in the general level of prices
A rise in the possibility of making more money
Needed so that people have more goods and services
An income that does not increase with prices
11
What is price stability?
The dollar value is slowly becoming less
Prices rise gradually as incomes increase
Condition when prices remain relatively stable
Decision making is left to the government
12
What does it mean to have economic security?
Federal program of disability and retirement benefits
Police and army make sure everyone is safe from harm
Protection from adverse economic events such as layoffs
The economy provides as many jobs as possible
13
Name one of the three types of economic systems.
All of the above
Command
Market
Traditional
14
True or False - A market economy has a very high degree of individual freedom.
False
True
15
What is an economic system?
A central authority that provides for the people
A system in which people watch their resources
An organized way of providing for the wants and needs
16
What is economic freedom?
The idea of free choice for lunch
Federal program of disability and retirement benefits
People choose their own occupations, employer and uses for $
Condition when prices remain relatively stable
17
What is a Market Economy?
The allocation of resources stems from rituals and customs
A place where goods and services are traded among tribes
Central authorities make most of the decisions
People and firms act in their own best interests
18
What is economic efficiency?
Equal pay for equal work
Benefits gained are greater than costs occurred
making sure everything runs as smoothly as possible
Protection from adverse economic events
19
What must happen in order to reach point "F" on the curve?
250 units of butter
ide resources
Economic growth
40 units of guns
20
What does the production possibilities frontier represent?
maximum level of production
Minimum level of production
A graph that shows us how much money is being spent
various combination of goods when all resources are employed
21
What is the opportunity cost to get from point "B" to "C" on the curve?
50 units of butter
production
ide resources
10 units of guns
22
True or False - An increase in the minimum wage can involve a conflict of goals for a country?
True
False
23
What is Economic Equity?
Equal pay for equal work
The idea that anyone can succed if they try
Economy provides as many jobs as possible
Condition when prices are relatively stable
24
What is social security?
Federal program of disability and retirement benefits
Rise in the general price of goods
A federal program that provides insurance
Protection from adverse economic events such as layoffs
25
Which of the following is an example of a traditional economy?
The United States
North Korea
El Paso
Aborigines

Economics Quiz 2 Flashcards | StudBud